The Italian longs market has maintained some regular activity over the past week but has lacked momentum. Traders describe a phase of "dead calm", characterized by limited trading and a general wait-and-see attitude. In this scenario, prices have shown only slight adjustments, while the market remains in balance thanks to the combination of cost-related factors, production strategies and seasonal dynamics.
As far as rebar is concerned, slight decreases of €10-15/mt have been recorded, with offers at around €435-440/mt ex-works base (€695-700/mt ex-works including regular extras) compared to the previous €450/mt ex-works base (€710/mt ex-works including regular extras). However, according to market players, these declines do not reflect a real deterioration in market conditions, and indeed two different sources at two major Italian producers have reported that the price remains stable at a good level. "Let's not forget that rebar has undergone significant increases since the beginning of the year. €10/mt is just a cosmetic correction," one of them commented. However, final demand continues to be held back by high stocks held by customers, who prefer to postpone new purchases. Despite this, mills maintain a firm stance on prices, and they would rather reduce production than give discounts.
In the wire rod market, trade flow remains consistent but not lively, with an overall balance between supply, demand and price levels. Customer stock levels, however, remain medium-high and, due to the summer holiday season approaching, they continue to limit purchasing activity. Right now, producers seem more inclined to implement cost control strategies than to play on price. The decline in scrap prices in Italy, the stability of gas prices and the electricity price peak in July will have "an estimated impact of around €10/mt on the finished product", a source commented. "The combination of these factors seems to point to a phase of substantial price stability," he concluded.
On the export side, there are some signs of activity, although not enough to compensate for the weakness of domestic demand. In particular, sales of about 50,000 mt were reported from Italy to Romania in June. Moreover, some sources have reported that a new rebar offer for €585/mt to the same destination has surfaced the market. However, it is to be considered a special price and not yet assessable as a market level.
