Cost Pressure Is High, Demand Is Weak, Italian Steel Mills Hope To Increase Domestic Prices Of Long Materials

  Currently, due to the surge in energy costs, the prices in the Italian long rod market have further compressed the profits of steel mills. Steel mills hope to increase domestic long rod prices by 20-30 euros per ton. The price of domestic rebar in Italy is generally at a transaction level of 350-370 euros/ton EXW, while the price increase of 12mm B450C rebar warehouse is about 615-635 euros/ton, and the transaction price of wire rod is generally between 650-660 euros/ton DAP, with no change on a weekly basis.

  According to Italian steel production data, Italy’s crude steel production in May was 1.92 million tons, a month on month increase of 12% and a year-on-year decrease of 3.5%. In May, the production of long timber reached 1.2 million tons, a year-on-year increase of 1.8%; The total amount of long materials from January to May was 5.3 million tons, a year-on-year decrease of 1%. Despite a slight improvement in domestic consumption, the overall sales level in June has improved compared to the previous month, and the production enthusiasm of steel mills has increased. However, the demand from end users is still lower than expected, and market prices continue to maintain normal levels, putting pressure on steel mills.