Italian rebar prices likely to drop further during September

ROME (Scrap Monster): Market sources indicate that Italian rebar prices are likely to witness further decline during the month of September this year. It must be noted that the prices had remained stable during August. The plunging scrap prices in the country coupled with extremely poor rebar demand are cited as the main reasons for the predicted price decline.

According to sources, no new orders were being booked during the past week. Buyers are seen waiting for further fall in prices. Consequently, buy orders are being postponed, they said. The market demand situation continued to remain weak. Lack of new bookings has further worsened the demand situation. Not much buying activity was recorded during the month of August as well. The bookings are expected to pick up towards the end of next week, sources hoped.

The overall weakness in rebar exports from the European region to northern African destinations on account of reduced credit lines have led to arrival of products from these countries into the Italian market. The increased rebar supplies from France and Spain have raised competition in the country’s domestic rebar market.

Rebar exports to Northern Africa are yet to resume following the traditional summer lull. New orders from Algeria are being delayed as buyers expect the prices to go down further in line with fall in raw material prices.

The base prices of Italian rebars currently stands at €400-410/t ex-works.