According to the latest market survey by SteelOrbis, during the last seven days ex-works prices in the Italian domestic rebar market has indicated increases on the lower end of the price range, with steelmakers' offers now at €495/mt ($599/mt) ex-works for 14-26 mm material, increasing from last week's €490-495/mt ($593-599/mt). Rebar suppliers are pushing harder on the pricing side and are not applying any discounts for large tonnage orders. For now, their strategy appears to be working.
Market operators consulted by SteelOrbis state that, despite the current poor environment in the domestic market, customers who really need prompt supplies or want to replenish their stocks with a view to the return from the holidays at the start of September are buying rebar anyway, showing their acceptance of producers' prices. Anyway, due to lackluster construction activity, local rebar demand is scarce but stable despite the latest price upticks.
On the export side, the most recent ex-Italy offers are at €490/mt ($593/mt) FOB, even if demand is close to being nonexistent because of Ramadan. During the coming week, long steel producers will post their offers for late August/early September shipments, trying to test if Middle East and North Africa (MENA) countries will absorb significant volumes of Italian output as they did in the first half of the year. The outlook is positive as the euro/dollar exchange rate has lately fallen below 1.21, enhancing the prospects for exports from the euro zone.
€1 = $ 1.21