Italian sections, a shopping bar offer price increases
Italian long products manufacturers are raising prices along with other European plants after suspending sales last week, market sources told Kallanish.
Rebar prices increased by as much as 70 euros per ton (81.48 US dollars per ton), while prices for other products, such as long products, increased more moderately - by about 30 euros per ton. The segment of trading bars remains structurally weak, and consumption levels are declining. It was not easy to transfer the price increase, as buyers are trying to shift higher costs to other market segments.
Two distributors and an agent say that overall consumption remains low, and sales of profiles and wire rods are helping to offset declining demand for rods.
Last month, the manufacturers of the bars tried to raise prices by about 50 euros per ton, but they were later reduced to about 20 euros per ton. However, this month, rising energy and transportation costs are forcing factories to raise prices by about 30 euros per ton.
Prior to the latest price increase, contracts were concluded at a price of 270-300 euros per ton, which is equivalent to 690-720 euros per ton, including additional sizes. Currently, the plants are targeting a price of about 330 euros per ton from the plant.
Raw material prices in Italy are also rising by 40 euros per ton after the market leader suspended sales last week due to rising energy prices related to the conflict between the United States and Iran, as well as several other European producers and ArcelorMittal (see separate article).
Prices for grades of the first category in Italy are currently around 800 euros per tonne for delivery in April, compared with around 760 euros per tonne for pre-escalation delivery. Lower prices were still available for imported materials last week.
.Author: Natalia Capra France
Kallanish.com