Over the last two weeks quotations for rebar in the Italian market have entered a downward movement after months of a seemingly unstoppable upward race. In particular, Italian steel producers are now offering rebar in a base price range of €600-610/mt, which is down €20-30/mt compared to the levels of mid-June.
There are three reasons for this downward movement. In the first place, a strong slowdown has been observed in demand. In the distribution system, where inventory levels are medium to high, further purchases are not expected until after the summer holidays. Buyers are facing a drop in consumption in the construction sector, in addition to problems of a financial nature. In second place, the price of scrap has been declining over the last couple of weeks and this has influenced quotations of finished products. Finally, there has been a drop in demand for Italian rebar from external markets, with the result that there is a greater availability of material in the Italian market.
Looking ahead to the near future, market players say that there could be another change in the direction of the price trend, under the influence of the international markets and of a possible increase in scrap prices.