In the Italian flat steel market, the situation is still the same as it was a few weeks ago, according to sources interviewed by SteelOrbis. Since the beginning of March, in fact, prices have been sliding down, perhaps also due to Italian producers' fears of possible inflows of import materials. Two weeks ago, domestic producers' hot rolled coil (HRC) base prices stood at €420/mt ($578/mt) ex-works, while they are now at €405-410/mt ($557-564/mt) ex-works. At the same time, cold rolled coil (CRC) prices are at around €485/mt ($667/mt) ex-works, while hot dip galvanized (HDG) prices are in the range of €465-475/mt ($640-654/mt) ex-works.
Flat steel prices in the Italian market have regressed to the levels of last November. In general, there is a tendency in the market to delay purchasing activities, while stocks are kept at levels which are in proportion to sales. In particular, local service centers hold medium-to-low inventories, which are enough to guarantee supplies for two and a half months. Service centers are also very cautious in ordering material from domestic producers, which generally deliver material in 40 days. Finally, financial problems and a lack of optimism still exist in the market. Local operators are awaiting the implementation of government initiatives that could spark some improvements though only from the second half of the year at best.
€1 = $1.376