Downward price trend in southern European flat steel market

Demand has remained weak in the southern European flat steel markets. In the meantime, due to the depreciation of the euro against the US dollar, flat steel offers from Europe have become more competitive, while domestic prices have trended downwards due to the low demand.
 
In the Italian domestic market, hot rolled coil (HRC) offers have dropped by about €25-35/mt ($33-46/mt) as compared to two weeks ago, declining to €500/mt ($660/mt) ex-works. HRC demand is low in Italy, with transaction activity remaining sluggish. Some market players state that prices may decrease further in the coming period.
 
In the meantime, flat steel demand in Portugal is significantly low and prices have not shown any changes. Accordingly, hot rolled sheet (HRC) prices in the Portuguese domestic market stand at €610/mt ($805/mt) ex-warehouse.
 
In the Greek domestic market, flat steel buyers are currently waiting and they are not buying any material right now. Accordingly, the Greek market remains very quiet.
 
After the recent price decrease, some say that transaction activity may become livelier if prices stay stable towards the end of the month October and do not indicate any increase.
 
€1 = $1.32