Italian rebar producers' attempt to raise prices to €780/mt ex-works locally has failed, sources told SteelOrbis. Therefore, domestic prices trended sideways in the past week, i.e., in the range of €750-760/mt ex-works. According to market sources, demand has not increased due to the summer slowdown. Meanwhile, scrap prices may decrease slightly in August, considering that demand for the raw material will weaken due to the holidays.
Furthermore, Italian mills are having troubles selling abroad, namely in northern and eastern Europe, not only due to recent floods. "Structural problems are present every year, but this year is worse due to floods. There are no trucks available, so we are unable to deliver our products," said the manager of an Italian long steel producer. As for exports by sea, sales are still low. The reference price is €690-700/mt FOB, which is too high to spur interest in non-EU countries, where Turkish mills are offering rebar at much lower prices.
Meanwhile, wire rod prices remained stable as well in the Italian domestic market. According to sources, drawing quality wire rod (SAE1006) prices are still around €850-860/mt delivered to customer, i.e. unchanged in the past two weeks. Sources underlined that in this case prices are being supported by the persistent shortage of material.