After Italian rebar prices rose by about 15 euros per ton ($17.77 per ton) last month, the momentum for further growth seems to be waning, and the base level of 320 euros per ton set by manufacturers in January is now considered unattainable, Kallanish notes.
The base level of 320 euros per ton was set only in individual cases for single trucks. According to current market estimates, contract prices are around 300 euros per tonne from the plant, although some participants expect further price reductions in the coming weeks, possibly up to 280-290 euros per tonne from the plant.
Buyers say that in the current sluggish market, price increases rarely last longer than a couple of weeks. Activity among construction companies and distributors remains weak. In central Italy, prolonged heavy rains have delayed work on construction sites, while sources agree that private housing construction has slowed significantly and demand for new projects remains unreliable. One of the sources adds that, despite rising prices for scrap metal and energy resources, manufacturers may be forced to agree to lower prices for fittings in the second half of the month.
Prices for the grid are also stable and amount to 390-400 euros per ton in the basic configuration, plus about 300 euros per ton additionally. According to sources, taking into account the size allowances of 260-270 euros per ton, the actual prices for fittings are currently estimated at 560-580 euros per ton at the manufacturing plant. According to rumors, one steel manufacturer has lowered prices for only some commercial steel grades by 20 euros per ton in order to possibly stimulate demand. Sources believe that others may follow.
Author: Natalia Capra France
Kallanish.com
