Italian rebar prices are stable on last week after falling some €40/tonne ($38.5/t) compared to the beginning of the month. Sales volumes however remain low and no growth is expected in October. The market is stagnating amid uncertainty and fear of buying.

This week, rebar is selling for €680-700/t base ex-works. Including size extras, values flatten at €940-960/t ex-works. Mesh is at €800-810/t ex-works, depending on tonnages, sources suggest.

Italian long and flat product mills that were idled last week have resumed production this week, encouraged by the government's financial support for high energy costs.

Last week, the Ministry of Economic Development (Mise) approved the “Aiuti Ter” decree, which is designed to reduce the impact of energy costs for energy-intensive sectors. This will allow steel companies to benefit from a 40% tax discount at the end of the year, which will be calculated considering each producer’s real energy consumption. “This acts as a stimulus for production. If companies do not produce, they will not be able to access to the 40% discount,” an informed source comments.

Smaller non-energy intensive firms, such as scrap producers and merchants, will be able to access a similar, 30% tax discount scheme, Kallanish notes.