Rebar demand is still modest in the Italian domestic market, where prices have remained at €405-415/mt ex-works in the past four weeks. However, local producers are still targeting higher levels, i.e., €420-425/mt ex-works.
Meanwhile, Italian producers' export offers have trended sideways in the past two weeks, at €410/mt FOB. Sources have reported that demand is not homogeneous abroad, while most customers are not happy to pay the current price level as "in the past they made long-term commitments because they were speculating on a downtrend," a manager at an Italian long steel producer explained.
Several market sources agreed that currently Italian rebar prices are supported by wire rod prices and not by the scrap market. Domestic drawing quality wire rod (SAE1006) prices are still strong in the Italian market. After increasing by more than €20/mt between late August and mid-September, wire rod prices have moved up further in the past few weeks and are now at €480/mt delivered. Sources explained that the uptrend is due to the lack of supply, "not only in Italy, but in all Europe".