According to market sources, Italian domestic rebar prices stand today at €390-395/mt ex-works, against the level of €390-400/mt recorded last week. Local demand is still weak and the spread of the coronavirus is causing uncertainties that could further undermine sales. "Until last week, producers were ready to raise their prices in March on the back of an expected rise in local scrap prices," commented a manager of a steelmaker based in northern Italy. "However, we are now trying to understand how this virus will affect the market. Scrap could be missing, scrap consumption could be lacking, or there could be a shortage of the finished product," the source added. For now, neither production nor transportation have slowed down. Transporters are traveling regularly although some of them have expressed concerns about going to some destinations close to the so-called "red zones", i.e., those were the infection started or where it is more widespread.
While the situation appears difficult in the domestic market, the same source reported that in the past few days some foreign customers, especially from eastern Europe, have been eager to meet their needs and bought a lot of material. Finally, with regard to exports by ship, producers are currently in wait-and-see mode after having obtained enough orders for the month of March. Sales were to Canada and Mediterranean countries and were closed at prices in the range of €410-420/mt FOB, SteelOrbis understands.