Demand remains weak in the longs market in southern Europe, but some producers are aiming for price increases, particularly in the Italian rebar segment. The main reasons for this are the planned production stoppages between the end of October and early November (coinciding with the November 1 holiday, also known as All Saints’ Day) and some signs of an increase in scrap prices.
In the local rebar segment in Italy, some producers are aiming for a €30/mt increase, setting their target for prices - which are currently stable at €280-290/mt ex-works base (€545-555/mt ex-works including regular extras) - at €310-320/mt ex-works base (€575-585/mt ex-works including regular extras). Buyers have yet to respond and are currently trying to assess whether this increase is serious. “There are still orders to be fulfilled at the old prices,” an Italian source commented, adding, “We will have to see if new orders will go through with the increase.”
In the export segment, ex-Spain rebar offers have been reported stable week on week at around €570/mt FOB, while ex-Italy rebar offers have increased by about €10-20/mt to around €570-580/mt FOB.
As for imports, ex-Turkey offers have decreased by about €10/mt week on week: rebar is now at €585-595/mt CFR southern Europe, while wire rod is at €595-605/mt CFR. Additionally, competitive offers for rebar and wire rod have been reported from Algeria at around €580/mt CFR and from Egypt at €570-575/mt CFR.