Prices for Italian rebar are starting to rise not because of increased consumption, but because of a shortage of materials, Kallanish notes.
This shortfall is due to recent production cuts that steelmakers often carry out to balance supply and demand, as well as a fire that occurred in early November at the Ferriere Nord plant in Osoppo, which will be idle for the entire month.
Buyers have reported difficulties finding certain sizes, as well as delays in shipments from Ferriere Nord. A source at the plant reports that as a result of the disruptions, the number of orders has increased.
Producers are now requesting a base price of 320-330 euros per ton (371.36-382.96 US dollars per ton) from the plant, until last week they agreed to about 300 euros per ton. Since then, reduced availability has led to factories becoming less flexible in pricing.
At the moment, the level of transactions this month is 290-300 euros per ton, and sellers expect further price increases in the coming days. One of the buyers notes that in December, in fact, there will be half a month due to the holiday period. Factories are expected to announce additional price increases in December, as they usually do before the holiday shutdown.
Taking into account the size allowances of 260-270 euros per ton, the actual prices for rebar are currently 550-560 euros per ton in stock. Grid prices are also rising: the base level is 390-400 euros per ton plus about 300 euros per ton of additional charges, while manufacturers are targeting a price of about 430 euros per ton in stock.
Natalia Capra France
kallanish.com
