Italian steel mills are pushing to raise rebar prices because of rising energy and transport costs. At the same time, demand for steel remains weak, market participants said.
According to Fastmarkets, in the week to November 4, the domestic Italian ex-works rebar price was assessed at €760–790 per tonne, compared with €750–790 a week earlier. Market sources said the increase was driven primarily by production costs rather than a pickup in buying.
“Demand remains relatively steady and weak, and the main reason for the recent rise in rebar prices appears to be continued pressure from high energy prices,” a buyer told Fastmarkets.
Electricity prices in Italy rose at the beginning of the week, while gas prices also increased significantly, according to market participants. This added to cost pressures on steelmakers. Mills are seeking to raise prices for new orders to offset lower margins on deals agreed earlier, particularly in export markets.
“As a result, steel mills are taking an even firmer stance on prices,” a distributor said.
In the Brescia area and other parts of northern Italy, discussed and concluded deals were in the range of €760–770 per tonne ex works. Some market participants considered prices of up to €780 possible. In southern Italy, the workable range was €770–790 per tonne, with one deal concluded at €790. Offers were heard at €770–780, while mills’ indicative prices reached €790–800 per tonne.
The previous week, truck drivers’ protests disrupted transport in southern Italy: deliveries were delayed, and some construction sites faced material shortages. By the time of the assessment, the transport situation had returned to normal, a buyer said, but freight costs remained high.
“Transport remains very expensive: drivers are willing to work only if they are paid enough,” a producer said.
In Spain, the delivered rebar price assessment was unchanged at €750 per tonne. For Northern Europe, Fastmarkets maintained its delivered range at €660–700 per tonne: one market participant cited €700–740, but other sources did not confirm these levels.
Trading activity in the European wire rod market was limited, and no new price indications emerged during the assessment period. Mesh-grade wire rod delivered to Southern Europe was priced at €670–680 per tonne and at €705–715 for Northern Europe; both assessments were unchanged.
