Even though local scrap prices have remained mostly stable in Italy in May, local long steel producers have had to cut their domestic prices due to very low demand. According to the Italian National Institute of Statistics (Istat), in March this year local construction output recorded an unprecedented fall of 36.2 percent compared to February and by 35.4 percent year on year. And even though lockdown measures have been eased in the country, with construction works resuming in early May, market sources said that finished steel sales have remained weak.
Domestic rebar prices have decreased by €10/mt compared to last week to €380-390/mt ex-works, while drawing quality wire rod (SAE1006) prices have decreased by €5/mt on average in the same period after trending sideways for a month and are now at €440-450/mt delivered to customer. As reported previously, Italian rebar producers have succeeded in selling some lots to countries such as Algeria, Canada, and Bulgaria, but they are still keeping their capacity utilization rates low.