Prices for Italian rebar remain stable week after week, despite the fact that manufacturers continue to insist on further increases, according to Kallanish. The market appears to have reached an impasse as buyers refuse to pay the new asking price of €440 per tonne ($517.55 per tonne) set at the factory.
Many buyers say they cannot accept the increase in recycling prices. One construction company decided to postpone future construction projects due to the sharp rise in prices for raw materials, including steel and cement. The company says it cannot cope with an average cost increase of about 40%, and is shutting down operations in an effort to maintain a small margin.
The rapid rise in prices in Italy after the US-Iranian conflict has led to the fact that Italian fittings have become one of the most expensive in Europe.
Large buyers left the market, relying on their stocks. Until last week, small buyers continued to purchase at a price of 410-420 euros per ton from the factory, limiting their purchases to several trucks at a time in order to cover only urgent needs. Taking into account the size allowances of 260-270 euros per ton, the actual transaction prices for Italian fittings are currently estimated at 670-680 euros per ton at the manufacturing plant, compared with an average of about 540 euros per ton at the beginning of March, according to sources.
Factories maintain an uncompromising stance, preferring to lose orders rather than lower prices, even though sales volumes remain low. Sources note that if sales remain at the current low level, manufacturers will eventually be forced to reduce output.
Many buyers are wondering how long the milling cutters will be able to maintain such rigidity. "There is a desire to buy and work, but the market is currently at a standstill, and we don't even know if we will be able to lower the price of 410 euros per ton," one of the sources comments.
Author: Natalia Kapra
Kallanish.com
