Despite pressure from buyers to lower prices due to reduced consumption across Europe, Italian steelmakers do not foresee any price decreases, especially due to upcoming production cuts. These cuts have already started for some products such as commercial bar and rebar and will continue until August.
In addition to the high energy costs facing Italian steelmakers, there is also a tug-of-war between scrap traders, who want a hike, and mills, who want lower prices. Steel producers, whose margins have narrowed significantly due to high production costs, will not be able to increase scrap prices in August.
Rebar prices have been flat compared to last week, averaging €600/ton ($674) ex-works including size extras. Wire rod also remained unchanged at €570-580/t ex-works, sources said.
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