Attempts to raise selling prices continued in the Italian long products market this week, but demand remains subdued and sales volumes are low.
According to market participants, the list prices are at the level of 470-490 euros per ton on a free-of-charge basis, which approximately corresponds to 735-755 euros per ton, taking into account standard surcharges. This is about 50 euros per ton higher than at the beginning of September. At the same time, real transactions, according to sources, are carried out at about 460 euros per ton free of charge, and in some cases at lower prices with limited volumes.
End-users are not interested in accumulating stocks until the end of the year and are limited to purchases for urgent needs in order to avoid surpluses in warehouses by December.
In the wire rod segment, market participants expect a moderate price increase in October — about 5 euros per ton compared to the previous month. However, the increase remains limited due to weak demand. As a result, prices for wire rod for drawing may rise to 675-685 euros per ton, and for wire rod for mesh production — up to 665-670 euros per ton.
According to one of the sources, this small increase is mainly due to increased production costs. At the same time, demand from end users continues to be constrained by international uncertainty and a reduction in European funds allocated to construction and infrastructure.
There were no export offers for wire rod from Italy. In the rebar segment, on the contrary, there were offers at the level of 590-600 euros per ton on FOB terms, although one of the market participants reported that he had also heard prices about 20 euros per ton lower.
Thus, the Italian market, as well as the market in Europe as a whole, found itself in a contradictory situation: manufacturers are forced to shift the increase in costs to prices, but buyers are not ready to accept higher quotation levels.
