After a positive trend observed in May, this month the Italian flat steel market has seen fluctuating demand from end-users. Market players believe that, given the situation in the market, current prices are relatively high, and many expect a downward correction in the coming weeks. In this context a decisive role might be played by the weakening of the international iron ore market in recent weeks, which has occurred amid the slump in the Chinese steel market.
Consequently, Italian service centers are very cautious in their inventory management and procurement activities: many are discouraged by the instability of prices and the hesitancy of end-user demand, in a context of chronic problems of liquidity and access to credit.
Currently, in the local Italian market, base prices for hot rolled coils (HRC) amount to €530-540/mt ($758-772/mt), down €10/mt ($14/mt) on the upper margin; cold rolled coil base prices have decreased by €10/mt, to €610-630/mt ($870-; and hot dip galvanized coils are quoted at €580-590/mt, virtually unchanged in the last two weeks. All prices are ex-works.
Even import activity is limited. Demand for imported coils has been falling progressively in June, while the price idea of buyers has dropped to $715-720/mt CFR.