Local producers' official domestic rebar prices in the Italian market are at €490-495/mt ($601-607/mt) ex-works for 14-26 mm material, showing a sideways to upward trend over the past week.
Market operators consulted by SteelOrbis state that the market has firmed up somewhat in the last seven days as some rebar producers have increased their offers by €5/mt ($6/mt). In fact, steel mills have been pushing harder on the pricing side, booking more orders at €495/mt. Meanwhile, discounts have almost disappeared from the market, reinforcing the lower end of the above price range, with orders under €490/mt no longer seen.
The two month-long downtrend in the international markets has apparently come to an end. At least, the forthcoming summer period and Ramadan will likely freeze the markets for the whole month of August. Market insiders state that in Italy during the past week buyer activity has picked up somewhat ahead of the long summer break with some buyers seeking to replenish their warehouses. Indeed, it is now the right moment for purchases as rebar prices are at their lowest levels of the current year. Moreover, as long steel producers have reduced their outputs considerably, in-stock availability is tight for some rebar diameters. This is another major factor contributing to the firmness of rebar quotations in Italy.
Export rebar offers from Italy have remained at €485-490/mt ($595-601/mt) FOB, even if demand is practically at zero levels in the Middle East and North Africa (MENA) region as Ramadan is about to start. Ex-Europe prices are also firm thanks to the euro/dollar exchange rate which decreased below 1.22 last week and is around 1.23 at the beginning of the current week. For the time being, prices on euro basis are still fairly competitive compared to prices on dollar basis.
€1 = $1.227