The Italian rebar and wire rod markets have continued to decline pricewise. Some of the sources believe the prices for longs are close to bottoming out and producers are unwilling to provide further discounts. However, taking into account the low levels of demand, buyers count on somewhat lower prices, knowing that more competitive offers might be granted by the mills on exports. No significant market improvement is expected until mid-January due to the upcoming holiday period.
Local rebar prices in Italy are, according to sources, now at €500-510/mt ex-works base or about €760-770/mt ex-works, including the regular extras, down €10-20/mt on a weekly basis. "The absence of buying continues," an Italian trader said. "There have been some attempts at €480-490/mt for rebar, but for now it seems they are not being accepted by producers. I think that until the Christmas stoppages very little will change, although making predictions is risky," he added.
The domestic prices for SAE1006 wire rod are also down again by €10-50/mt: some sources say the price is now at €760/mt DDP, while others say it is as low as €710-720/mt DDP Lombardy, compared with the range of €750-770/mt DDP seen a week ago. Producers underline that the increased electricity tariffs and costly scrap levels are keeping them away from providing further discounts on the longs.
In the export segment, however, some of the mills seem more flexible. Specifically, the overseas offers for rebar have been reported at €590/mt FOB for wire rod and at €600-610/mt FOB for rebar. "Export is basically frozen, while in the domestic market this phase is very sluggish, very calm," a trader said. "By now we are approaching the Christmas closures, we are in a weak moment. The game will resume around mid-January, after the closings: until then there will be little or nothing to do," another trading source mentioned.
In the import segment, no firm offers have been reported, though the export prices for wire rods from Algeria and Egypt have been heard at $575/mt and $600-610/mt FOB, respectively. The estimated freight rates for the small tonnages are at $35-40/mt from North Africa to the southern part of the EU.