While in the previous week rebar prices in Italy had indicated a timid rise, in the past week the uptrend has come to a halt. Accordingly, domestic producers' offers are unchanged week on week, remaining at €485-495/mt ($624-637/mt) ex-works for 14-26 mm diameter rebar.
Italian steel producers had targeted a price uptick in order to absorb the rise in scrap prices recorded in November. In fact, the offers for which they have gained acceptance have been moving closer and closer to €495/mt, but low demand is still a problem in the market. Although construction activity is extremely scarce in Italy (the national statistics office Istat recently posted a 10-year low index value for September), the sales managers of major rebar producers affirm that as the year draws to an end local offers will record further increases.
As regards exports, in Algeria demand levels are much more encouraging, indicating that Italian exporters have significant chances of obtaining their desired prices. During the past week, ex-Italy offers have remained unchanged at €480/mt ($618/mt) FOB, but Italian mills have already set their goal at €490/mt ($631/mt), citing the scrap price uptrend and decent Algerian demand. The currency market continues to be favourable to ex-Europe offers as in the last seven days the euro/dollar exchange rate has fluctuated at around 1.28.
€1 = $1.287