Rebar prices rose by EUR 5 to EUR 605 on 3 June. Sources mentioned that new offers have pushed prices up, but demand remains weak and uncertain. Unfavourable weather conditions in northern Italy are putting pressure on the market by slowing down construction activity.
According to SteelRadar data, the scrap market is also showing activity. E3 scrap prices rose by EUR 18 to EUR 383. High scrap costs and shortages in local scrap supplies have led to the acceptance of higher offers in the Italian market. Sources expect scrap prices to increase further in the coming days.
Wire rod prices rose by EUR 3 to EUR 653. Italian mills stated that the increase in scrap costs pushed up production wire rod costs and they tried to offset this situation with production cuts. Due to weak demand, producers are forced to cut production.
Prices of flat steel products are on the decline. HRC (hot rolled coil) prices fell by EUR 15 to EUR 630 and CRC (cold rolled coil) prices fell by EUR 10 to EUR 745. Producers say that they have to cut production due to low margins and prices. Galvanised coil prices also fell by EUR 28 to EUR 846.
Plate steel prices fell by EUR 20 to EUR 690. Market sources said that they are cautious and limiting their purchases due to economic uncertainty and the sluggish global steel market.
Significant investments are also continuing in Italy. JSW Steel signed a EUR 143 million investment agreement with the Italian government to revitalise the Piombino steel plant. This investment aims to make the plant more modern and efficient and aims to reduce import dependency by increasing local steel production.
These developments present a complex picture in the Italian steel market. While demand uncertainty and cost increases are challenging producers, the investments made give hope for the future.
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