Rebar prices have continued to decrease in the Italian domestic market in the past two weeks, falling to €355-365/mt ($397-409/mt) ex-works for 14-28 mm rebar.
Besides weak demand, local rebar prices have been affected by the decrease in local scrap prices, with scrap prices in September declining by more than €20/mt ($22/mt), while it is thought that a similar decline in scrap prices could be seen in October. Sales of Italian steel producers have been impacted not only by competition from imported semi-finished and coils, but also by end-users continuing to postpone purchases due to fears of further price decreases. This has resulted in a reduction in steel production and therefore in a reduction in scrap purchases. Furthermore, the Volkswagen affair has caused a worsening of the situation, with over a thousand Italian suppliers of the German group currently receiving a lower number of orders for steel and mechanical components. Meanwhile, Italian scrap dealers continue to struggle with the lack of scrap collection, with strong competition, delays in payments and tight margins.