Some Italian rebar producers have halted sales and are expected to increase their prices by €20-30/tonne ($21-31.6/t) for new contracts. Local rebar prices have seen a very difficult month of February with falling transaction prices. This has been due to lower scrap prices in the first two weeks of February, no publication of Algerian import licences, a large export market for Italian and Spanish rebar and weak local demand.

Local transactions last week dipped to as low as €110/t base as market sources who spoke to Kallanish say they lost orders because they refused to sell at “… such low prices.” However, with the recent rapid increase in scrap prices, both in Italy and internationally, all producers are expecting to push up their offers and go back to €140-150/t base, the level seen in January.

This week including €260/t size extras, transactions are between €370-380/t ($390-400/t) ex-works. The objective of local producers is to push this beyond €400/t ex-works. The best outlet for Italian rebar is Germany where buyers are taking Italian material at higher prices compared to the local market, Kallanish hears.