Prices for Italian rebar are stabilizing, and some manufacturers expect an increase.
Italian rebar prices are expected to stabilize week by week after falling by about 30 euros per tonne ($34.3 per tonne) in June. Buyers expect prices to continue to decline this month, although manufacturers seem to be resisting low rates, Kallanish notes.
Some steel producers are considering raising prices this month ahead of the August maintenance shutdowns, but this is seen as an attempt to stem the decline.
The drop in volumes since factories started raising prices in March has been significant, and higher prices cannot offset lower sales volumes in the long run. Last month, several long products factories halted production to balance supply and demand, and more shutdowns are planned this month, which will affect demand for scrap metal and lower domestic prices for raw materials.
Rebar prices have remained stable this week at 420-430 euros per ton amid low demand. Taking into account the size allowances of 260-270 euros per ton, the actual transaction prices are estimated at 680-700 euros per ton from the factory. The cost of the grid at the plant is 530 euros per ton, excluding additional dimensions - about 300 euros per ton, sources suggest.
The construction company reports that activity in June was limited and that it is conducted on a daily basis. The distributor also calls consumption extremely uncertain, while another customer confirms that he continues to purchase several trucks per week only to meet urgent needs.
Author: Natalia Kapra
Kallanish.com