Italian Steel Rebar Prices are Plunging as Buyers hold back purchasing
- 22-Sep-2022 4:24 PM
- Journalist: Harold Finch
Germany: This week, the Italian Steel Rebar prices are plummeting owing to the slowed downstream construction sector. Market players have noticed that in some contracts, Italian Steel Rebar prices dropped by more than USD 40/MT compared to the last week. According to the manufacturers, the recent high prices of European Steel Rebar and all other long products are unbearable. Thus, the wave of gains notified in September has slowed the construction segment in Italy.
According to distributors, some private residential construction companies did not re-open after the August holiday break and have hampered all the new projects and building sites. Some construction companies prioritize the most profitable building sites while others wait for Steel Rebar prices to fall. Local Government projects are also slowing due to sharp price increases in all construction raw materials such as Steel, wood, and cement.
When Steel Rebar prices decreased in the past weeks, Steel manufacturers noted that buyers resumed booking for quotations. However, Steel still has inquiries in the domestic market, but new price hikes have declined the purchasing activity. Distributors cite that they already have sufficient stockpiled inventories.
According to market participants, the market is very concerned about the energy prices as if it is not taken care then energy prices will glide roughly four to six times higher, which European citizens can not afford. The European Commission was attempting to devise a plan to address Europe's energy crisis, and buyers were waiting to see what would happen as if energy prices fell, so would the cost of long products.
During the previous week, the workable levels for Steel Rebar in the Italian domestic market were USD 980-1000/MT delivered. However, this week, Steel Rebar is trading for USD 925-945/MT ex-works. With the subdued demand outlook in the regional market, ChemAnalyst anticipates that the Steel Rebar prices will further decline till mid-November.
