Domestic rebar prices have increased strongly in the Italian market compared to mid-December amid a shortage of material and the recent strong uptrend of local scrap prices. One month ago, Italian rebar producers had halted their sales after reaching deal prices of €470-475/mt ex-works, as they wanted to gain a clear picture of the market situation in the context of the bullish trend in the global steel market. SteelOrbis has learned that this week Italian producers managed to close sales at €560-570/mt ex-works, and have subsequently started offering material at €590-610/mt ex-works. One source commented that, after such a big price hike, buyers are puzzled, though "producers are holding the line and do not intend to retreat."
At the same time, no producer is offering rebar to the export market at the moment, while one trader predicted that they will start doing so in around ten days. When this happens, according to the trader, "They will probably have to ask for a €200/mt increase compared to the latest transaction prices in December."