Italian merchant bar prices are falling again week-on-week after having already lost significant value last month in a difficult and sluggish market, market participants tell Kallanish.

Some mills are still asking a base price of €70/tonne ($77/t) ex-works in Northern Italy, and stable versus last week. Large purchasing groups have bought Spanish material however at €55/t base delivered and €60/t base delivered. This gives a finished price of €475-480/t delivered, including an average €420/t for size extras, sources suggest.

Domestic material remains slightly higher with some mills more aggressive than others. Domestic base prices are still around €60/t base ex-works, or €480-485/t ex-works, sources say.

Poor demand and low levels of activity are continuing to be a feature of the market, and some mills are implementing a week’s stoppage every month to address the issue of overcapacity. Some sources believe European merchant bar prices are about to suffer further serious erosion.