Domestic producers in Italy have tried to stabilize prices in the longs segment, but the limited local demand and pessimistic mood have caused a further drop in offers over the past week. The downtrend in the export segment has also continued since mills are still forced to boost their sales to other markets, including those within the EU and outside of it. However, competition in the export markets, particularly in the wire rod segment in the region, is rather tough, mainly in view of the attractive prices from Algeria.
In the local market in Italy, according to sources, rebar prices have dropped by €10-20/mt over the past week to €520/mt ex-works base or around €780/mt ex-works including the regular extras. The SAE1006 wire rod prices have also gone down by €20/mt over the same period, now standing at €750-770/mt DDP northern Italy.
Market players report the domestic market seems to be finding itself at a dead end. “At the moment, we are at a real standstill. Customers are finding it hard to come and buy. Prices are falling continuously and inexorably, sales are at rock bottom,” a trading source told SteelOrbis.
In the export market as well, offers seem to be even lower than last week’s levels. “The situation is deteriorating day by day,” said an Italian source. One of the largest Italian producers has dropped its export prices again, by $20/mt, and is selling mesh quality wire rod at $600-610/mt FOB and, according to the source, “If you push a bit, they will give an extra discount”. The rebar offers from Italy to the European markets are at $630-660/mt ex-works from one Italian mill and at $610-630/mt ex-works/FOB from another.
North Africa remains active in its efforts to trade wire rod in the Mediterranean region, but the most competitive offers are coming from Algeria. One of its large mills traded certain volumes at $567/mt FOB last week and this week has attempted to increase the price to $570-580/mt FOB. Egypt is still trying to sell wire rod at $610-620/mt FOB with not much success, while Tunisia, according to sources, has been trying to trade at €590/mt FOB.