A lack of demand is observed in the Italian domestic rebar market, while producers' prices have decreased by €10-20/mt ($13-26/mt) week on week to €450/mt ($584/mt) ex-works. According to market players consulted by SteelOrbis, besides the lack of demand and consumption, the biggest problems in the market are difficulties in collection of payments and negative sentiment when it comes to sales. Market sources are unsure about the future prospects of the market. They say that, although in July prices usually hit the bottom and then start to rise during the summer closure of producers, the current year is anomalous and it is difficult to make forecasts.
Meanwhile, export prices are not clear. Some producers are not giving any quotations, while others are making offers at €415-435/mt ($538-564/mt) FOB. Algerian buyers are not in need of rebar now, but there is some interest for offers at €420/mt ($545/mt) FOB or below. The beginning of Ramadan, on July 9, is not expected to affect the situation, but it will probably slow down activity at ports.
€1 = $1.297