While last week it was observed that the uptrend in the Italian rebar market had stalled, in the past seven days Italian domestic rebar prices have started to fall, declining to a range of €505-510/mt ($662-668/mt).
The price increases recorded in the Italian rebar market at the beginning of September exceeded buyers' price idea. Current demand levels are very low and market operators consulted by SteelOrbis think that prices could fall further before supply and demand reach greater equilibrium. Currently, steel scrap prices are trending sideways after the early September increases, while domestic steelmakers are waiting for October to decide which strategy they should follow, also in light of raw material trends in other EU markets.
Beyond the impasse in the domestic market, there is not any good news from the export markets either. Algerian buyers are currently in wait-and-see mode, even if their rebar stocks are decreasing, and they are not expected to book new supplies until ex-Europe offers are at desired levels. In the past week, ex-Italy prices have decreased by a further €5-10/mt ($7-13/mt) to €490-495/mt ($642-648/mt) FOB. Italian exporters must also face the recent strengthening of the euro.
€1 = $1.31