So what is happening in the Italian domestic billet and longs market after the return from the August holidays? Many in the market say that we will have to wait a few more days in order to have a clearer idea of the market situation. Nevertheless, the general impression so far is that any possibility of a downward trend in prices can be excluded. There's uncertainty, however, as to whether just stability or a climbing trend lies ahead. Currently, demand from end-users seems to be at a satisfactory level. If, added to this, the end of the destocking phase is seen, then it would seem safe to predict a rosy month of September.
With regard to billet, there are two points worthy of observation. The first is the impression that we still awaiting a clear indication of the commercial policies that will be pursued by the steel mills. On an international level, on the other hand, there has been some movement. The impression from talking to traders is that we are moving in the direction of an upward tendency, though within limits. Billets imported for re-rolling from the Black Sea region have increased by $30-40/mt for October shipment.
As regards beams, which have seen a recent backward step of €5-10/mt ($7-14/mt) in the Brescia Chamber of Commerce reference prices for the market, producers are still holding on to the gains they have made and are even pushing for a few extra euro. Turning to merchant bars, the situation is similar to that for beams. Merchant bars produced in Italy are being offered at €10-20/mt ($14-27/mt) higher than the pre-holiday levels. It still remains to be seen whether these maneuvers by the producers will result in actual sales contracts.
Meanwhile, rebar is also beginning to raise its head. There are two main reasons for this. On the one hand, the summer break resulted in a fall in offers in the face of demand levels which remained good. On the other hand, exports to North Africa have recently been giving cause for satisfaction to Italian producers, following a period that was less positive.