In the week to Wednesday, October 28, rebar prices in Italy rose. Producers sought increases to offset higher energy, fuel and transportation costs, despite persistently weak demand.
Market participants reported upward pressure on prices. The main driver was higher production costs, not an improvement in demand.
“Steelmakers are pushing for price increases. However, the market remains depressed and demand is very weak,” a distributor representative told Fastmarkets.
Market participants said truck drivers’ strikes disrupted deliveries to southern Italy. This led to production disruptions and shortages of materials at some construction sites.
“The transport strikes and protests of recent days have caused serious disruption in the south, particularly to logistics, material availability and the ability to find transport. This is putting additional pressure on the market,” a buyer representative told Fastmarkets.
In northern Italy, workable prices were €750–770 ($836–859) per tonne ex-works. In the south, workable levels and transaction prices were in the range of €760–790 per tonne ex-works.
At the end of the week, Fastmarkets raised its assessment of domestic Italian rebar prices ex-works to €750–790 per tonne as of October 28. The range had been €730–780 per tonne the previous week.
Fastmarkets’ assessment of domestic Spanish rebar prices delivered was unchanged at €750 per tonne.
In Northern Europe, the latest workable transaction prices for delivered rebar were €660–700 per tonne.
Fastmarkets’ weekly assessment of domestic Northern European rebar prices delivered therefore remained at €660–700 per tonne on October 28.
European wire rod prices were also unchanged over the assessment period.
According to market participants, workable transaction prices for delivered wire rod in Southern Europe were €670–680 per tonne, unchanged.
Fastmarkets’ weekly assessment of domestic Southern European mesh-quality wire rod prices delivered was €670–680 per tonne, unchanged on the week.
In Northern Europe, workable transaction prices for delivered wire rod were €705–715 per tonne.
Fastmarkets’ weekly assessment of domestic Northern European mesh-quality wire rod prices delivered remained unchanged at €705–715 per tonne on October 28.
Author: Nia Radenkova
fastmarkets.com
