The relentless hike in scrap prices has left mills in Italy gasping for price hike WoW. A hike of EUR 10 per tonne to EUR 20 per tonne over the last ten days, has forced local producers of longs to keep lifting their quotations despite weak demand.
With spurt in domestic prices the sellers are opting for caution in export lest they sell cheap with continuous increase in raw material prices. However, producers are likely to return to the export market soon, despite coming Christmas holidays hence export levels will gain EUR 20 per tonne to EUR 25 per tonne in the coming weeks.
Local producers have started setting domestic rebar base prices at EUR 270 per tonne to EUR 280 per tonne EXW, which is about EUR 500 per tonne to EUR 510 per tonne effective.
Domestic wire rod prices have remained generally unchanged in the same period, but they are expected to move up soon. The offers are forecasted to climb by EUR 20 per tonne to EUR 30 per tonne in the near future, to EUR 480 per tonne to EUR 500 per tonne EXW.
Billet prices have moved in sync with the global levels having transacted at EUR 450 per tonne to EUR 460 per tonne EXW, like last week. It is reported that levels of EUR 470 per tonne to EUR 480 per tonne EXW are doing rounds.