There is a moderate price increase in the Italian long-range market

Sentiment in Italy's domestic long-range rental market has improved markedly this week. Additional price support is provided by the general increase in the cost of semi-finished and finished steel products on international markets. According to market participants, in the rebar segment, the base level of 440 euros per ton, or 700 euros per ton, taking into account the usual additional costs, is now fixed. At the same time, some producers reportedly intend to raise their offers by another 20 euros per ton. One source noted that there are more orders coming as customers are likely eager to restock in anticipation of further price increases. A representative of the Italian steel mill said that the level of stocks is under control. Despite the difficult and uncertain geopolitical situation, September may turn out to be a positive month. At the same time, according to him, the market remains extremely volatile. In the segment of wire rod for drawing, the range of deals on Italian material concluded last week expanded to 670-690 euros per ton. Meanwhile, end users are offering 650-660 euros per ton for imported material, taking into account the cost of CBAM. According to one of the sources, manufacturers of wire products still prefer domestic raw materials because they carry fewer risks. Another market participant, who had expressed cautious optimism about the short-term dynamics at the end of last week, now stated that the medium- and long-term prospects remain negative. The demand in the retail segment continues to be from medium-low to low. One of the sources believes that the current growth will last no more than two to three weeks, as the fundamentals remain weak and market dynamics have changed markedly, making it difficult to predict a clear trend. The increase in supply and prices in the domestic market is also noted in the segments of bars and trade profiles.