Italian rebar prices are stable compared to last week but the market has been extremely quiet in recent days as buyers forecast more price falls this month. Italian rebar lost €30/tonne ($36) on average in last week’s transactions, in line with declining scrap prices, Kallanish notes.

Current contracts for domestic scrap are at €310-330/t base ex-works. Including €260/t size extras, values are at €570-580/t ex-works, sources say.

New construction projects are slow to be financed due to the pandemic crisis, and buyers intend to keep working with their stock as long as they can. Two sources say they can refrain from buying for the next two weeks.

However, the future of scrap prices in the country is still unclear. Expectations of Turkish mills returning to purchase scrap and stabilising prices are spreading hope that values in Italy may even rebound. The latest spot contracts lost €20/t compared to the beginning of January. Domestic rebar producers are currently asking for €320-330/t base ex-works but some are still insisting on €350/t base ex-works, Kallanish is told.