Italian rebar transaction prices have lost €20/tonne ($21.3/t) compared to January levels. This is due to low domestic demand from the construction sector and it is a direct consequence of the current €25-35/t month-on-month fall in local scrap prices, sources tell Kallanish.

According to some buyers however, quotations have not yet bottomed as the situation with February scrap prices in the country is still uncertain. In addition, Algeria has not yet published its rebar import licences as Italian and Spanish players had hoped. “February rebar prices may lose a further €5-10/t in line with other long products. The market has gone a little quiet as buyers put off their purchases to see how much scrap will go down. This happens every time prices start declining,” an informed source says.

From a base price at the beginning of the month of €150/t on average, local rebar prices are now down to €130/t, or €140/t in very few transactions. This, including €260/t size extras, gives a finished price of €390-400/t ex-works, sources suggest. Last month producers sold a good amount of material and at good prices to Germany where demand is both keeping prices higher and Italian exports within Europe lively, Kallanish hears.