The drop in scrap prices and the lack of demand have led to a decline in the prices of rebar in Italy, which in the last two weeks have gone from the level of €1,140-1,160/mt to that of €1,110-1,130/mt ex-works (for 14-26 mm diameters).
"Scrap lost €50-60/mt last week, but they say it should go down by €100/mt. It is clear that in this situation our customers are not buying as they expect further reductions," commented the manager of a local long steel producer. "There is little enthusiasm. We are working at 70 percent [of capacity] and like us, I believe, also all other producers," continued the source, adding that they share with their counterparts the fear of a gas stop from Russia, which would cause a new flare-up of costs, forcing steel mills to make further stoppages.
As for exports, several sources spoke of a patchy situation in terms of demand. "There are countries in which things have gone quite well so far, but as import scrap prices declined in Turkey, buyers are now stopping their purchases. In addition, purchases have already been made in Germany and Switzerland," a source explained. As for exports by ship, "there is no demand at the moment, so we can't even talk about prices."
A similar situation was recorded in the Italian wire rod market, with buyers waiting for further decreases. The prices of drawing quality wire rod have fallen to approximately €1,150/mt, compared to approximately €1,200/mt two weeks ago, both delivered to customer.