Domestic rebar prices have inched up further in the Italian market in the past week thanks to a slight demand improvement, according to local producers. Local producers’ domestic rebar prices have reached €380-385/mt, compared to €375-385/mt recorded one week ago, both ex-works.
As reported previously, Italian rebar producers have been trying to reverse the downtrend of local prices since mid-June, pushing up their offers to around €390/mt ex-works and even €400/mt in at least one case. Transaction prices had hit a bottom at €360-370/mt ex-works in early June. However, not all sources agree on whether demand has actually improved. "Producers are trying to prevent further price decreases, also by pushing volumes in the export markets. However, domestic demand remains weak and prices are still fragile," said one international trader.
According to an official at an Italian steelmaker, producers have obtained good order volumes in June, both in the domestic market and abroad. Italian producers have sold good volumes of rebar to Canada, East Africa and Tanzania in the past few weeks. Now they are offering material at €385-390/mt FOB. Given the above, there are rumors of further price increases for Italian rebar. However, these are unlikely to be supported by scrap price increases, according to sources.