According to market sources, in the Italian domestic market local producers' prices for 12-28 mm rebar have continued to decrease over the past two weeks, falling to €355/mt ($428/mt) ex-works, whereas at the end of September prices were at €375/mt ($405/mt) ex-works. Many producers are hoping to keep prices stable at the current price level, but it is heard that a few producers have already lowered their prices to €345/mt ($393/mt) ex-works. Domestic sales are still scarce. Consequently, several local producers are going to halt production for at least a week during the current month.
As for the export market, activity is not particularly lively in Algeria - the main destination for Italian rebar exports. Italian producers are trying to keep their offers at €310/mt ($353/mt) FOB or €340/mt ($388/mt), CFR, but Algerian buyers are targeting another €10/mt ($11/mt) price cut. Meanwhile, Spanish exporters are already offering rebar at €335/mt ($382/mt) CFR . Italian exporters do not seem inclined to lower their offers, but much will depend on what scrap prices will do in the second half of the current month. There is a good chance that scrap prices will soften further in Italy since local producers are reducing their outputs.
€1 = $1.14