A certain degree of optimism is evident in the local Italian merchant bar market. Demand is still at low levels, but a rising tendency in market prices has been seen since Beltrame's decision to apply a €30-50/mt price hike for all its merchant bar products.
In addition, other Italian producers are also trying to hike their prices for the local market. Currently, customers are still in wait-and-see mode, and producers have not obtained the hoped-for customer reaction. These producers are seeking to raise their prices due to the general financial difficulties they have experienced throughout Q1 and Q2: they are trying to increase prices in order to limit their losses. However, lack of demand and general sluggishness in trading (though not as bad as compared for other steel products in the local market) is causing customers to hold back from accepting the higher prices.
If the producers' price hikes are accepted, the base price for merchant bar lower than 59 mm would stand at €170/mt, while for merchant bars over 60 mm the price will be €200/mt. The upward direction of prices is also supported by concerns of a shortage due to Beltrame's decision to halt operations at its Piemonte region-based S. Didero plant for a period of three to four months. Such a shortage is in particular thought likely to happen after the summer. The plant has an average yearly production of 750,000 mt of merchant bar products. In addition, SteelOrbis has heard that 12-16 mm square and round bar prices could rise further.