In contrast to the newfound stability of merchant bar and rebar prices in Italy's domestic market, the prices of beams in this market are continuing to rise. Indeed in recent days quotations for beams in Italy have risen by over €20 /mt - in spite of the lack of brilliance of current levels of real demand and of the slight decline in prices for scrap in the domestic market. The low inventory at all levels of the market and the healthy state of producers' order books (supported by flourishing overseas demand) have allowed producers to continue to raise sales quotations for their customers.
The situation for distributors is somewhat different. Strong competition and weak demand from end-users have prevented stockists and service centers from passing on to customers the full price increases which they have paid to the mills. At the current somewhat confused juncture, it is not difficult to find traders' beams quotations which are lower than the offers from producers. Traders, however, say that this state of affairs is temporary and that a more appropriate equilibrium should be reached within the next two to three weeks.
Looking forward to the near future, those involved in this market say that they are expecting to see further rises in the prices of beams. The strong position of producers and their desire to raise their prices should be the determining factors at least until the start of the summer holidays (i.e. end of July).