Italian rebar manufacturers are striving for significant growth
Italian rebar manufacturers are raising prices by as much as 70 euros per ton ($81.48 per ton) after suspending sales last week amid a sharp rise in production costs related to the escalation of the Iran-US-Israel conflict, market sources told Kallanish.
The production of rolled products in Italy is being affected by a sudden increase in gasoline prices and transportation costs, as well as a sharp increase in gas and electricity prices. Some factories are considering reducing production or changing jobs to limit production costs, which, according to sources, may lead to some shortages.
Demand for recycling, however, remains weak. Before the conflict, the cost of contracts had already decreased by another 10 euros per ton amid lower consumption and a slowdown in construction activity, amounting to about 270-280 euros per ton after completion of work. Prices for the grid also decreased to 340-360 euros per ton in the basic configuration and about 300 euros per ton additionally.
.Prior to the conflict, including rebar size allowances of 260-270 euros per ton, actual rebar prices were estimated at about 530-550 euros per ton at the plant. This week, manufacturers returned to the market, offering fittings at a price of 350 euros per ton, which caused strong resistance from buyers.
Several market participants say they will not accept the new price levels, arguing that they cannot refuse to raise prices downstream. The new asking price for mesh is now 410 euros per ton at the factories.
One source at the construction company warns that such a sudden increase in energy and steel prices could delay the start of new construction projects as contractors overestimate costs. Another says he won't buy at current prices and can afford to suspend purchases for three weeks.
Meanwhile, most other European rebar factories are also raising prices. This is in addition to the fact that ArcelorMittal and a number of other manufacturers in Europe are seeking to raise prices for long products, including rebar, by an average of 15-20 euros per ton, depending on the product. In France, rebar prices are rising by 20-30 euros per ton (see Kallanish passim).
Author: Natalia Kapra France
Kallanish.com