Domestic rebar prices have decreased further in the Italian market in the past two weeks, albeit just slightly. Also, most market sources have the feeling that the bottom may have been reached. Prices have decreased from €380-390/mt to €380/mt, all ex-works. However, a manager of an Italian long steel producer said, "We're seeing a recovery compared to the first half of May". He added that, although activities are still low currently, "there is stronger interest from both Italian and foreign customers, who are expected to resume purchasing activities in the short term".
The long steel market is showing a better performance compared to the flat steel segment, thanks to the fact that construction activities are performing better in Italy and in the rest of Europe compared to other end-use industries, such as automotive. As for the export market, the latest sales by sea were recorded in mid-May, when an Italian steelmaker sold a big lot to Canada at a price of €400-410/mt FOB. Currently, Algerian customers are asking for a price of €385/mt CFR (€370/mt FOB), which is too low for Italian producers, also considering the trend of international scrap prices.