According to SteelOrbis sources, demand in the local Italian merchant bar market is very low and has caused domestic prices to decrease decrease in recent months, going from the mid-July level of €80-100/mt to the current €60-70/mt ($67-78/mt) level, both ex-works.
Prices have also been affected by the decline in domestic scrap prices and trade tensions between two major Spanish producers, which resulted in an increase in price competition across the EU. The situation, according to sources, is particularly critical in Italy and Germany, where consumption has fallen significantly since the beginning of the year.
Nevertheless, the drop in merchant bar prices in the Italian market may have stopped in view of a possible rebound in scrap prices, with price increases seen in the latest import deals to Turkey.
*In the Italian market, price extras can vary in the range of €410-610/mt ($455-677/mt) for domestic sales, depending on dimension and product.
€1 = $1.11