Rebar prices have decreased in the Italian domestic market as scrap prices have weakened this month and local buyers are in wait-and-see mode, sources told SteelOrbis. Prices are now mostly in the €730-750/mt ex-works range, compared to the €750-760/mt valid until last week. Moreover, a few sources reported they have even begun hearing offers at €740/mt ex-works, "but not lower."
"August prices were too high, i.e., double compared to one year before. It was a matter of time before we saw them decrease. Even scrap prices in Italy were at the highest levels in the world. Now rebar buyers are waiting before buying as they are scared. However, they do not have very high stocks as they did not buy a lot in July and August, so they will have to make a move sooner or later," one local producer explained. According to most sources, rebar prices should not collapse in the coming period as many construction projects have yet to start.
As for the rebar export market, the situation is varied, as some markets (like the Balkans) are suffering more than Italy, while others (like Germany and central Europe) are performing better. Accordingly, prices may vary a lot depending on the destination. Meanwhile, sales via ship are almost non-existent. A week ago, Italian producers' offers were around €660-650/mt FOB, while now they are €10-20/mt lower. Recently, one Italian mill sold some rebar to Cyprus at slightly less than €640/mt FOB, according to sources.