Contract prices for Italian fittings and manufacturers' quotes are rising. Some steel producers have suspended sales, while others are now offering an additional 20 euros per ton ($23 per ton) compared to last week.
The first round of price increases took place in mid-July, when producers asked for about 270 euros per ton at the base level. Last week, the second round followed, as a result of which quotes rose to 290 euros per ton from the base plant. This week, producer prices have become even higher - 300-310 euros per ton from the factory.
This jump is due to manufacturers' attempts to restore profitability after the continued fall in prices since May. The sharp rise in prices is also due to the acute shortage of materials in the Italian market.
It is difficult to find rebar in rolls from 12 mm to 20 mm in diameter and up to 6 meters in length. One steel mill is reported to be out of stock, while others are facing similar situations due to low production levels in July combined with high sales and lower prices in July.
Customers are currently shopping to replenish their stocks ahead of the planned production shutdowns in August. Kallanish notes that most of the plants will be idle from August 8 to August 24.
The current base prices for rebar are currently hovering at 280-300 euros per ton, reflecting an average increase of 20 euros per ton compared to last week. The actual prices for fittings, including size allowances averaging 260-270 euros per ton, are indicated at 540-560 euros per ton from the factory.
Domestic grid prices also tend to increase, averaging 400 euros per ton from the factory, excluding transportation and size surcharges, which increase by about 300 euros per ton. Manufacturers are asking for 410 euros per ton of finished products.
Natalia Capra France
Kallanish.com
