After the declines reported last week, in recent days flat steel prices in the Italian market have remained unchanged. Accordingly, hot rolled coils (HRC) are offered at the base price of €470/mt ($606/mt), cold rolled coils (CRC) are at around €530-540/mt ($684-697/mt), while hot dip galvanized (HDG) coil prices are standing at €520/mt ($671/mt), all ex-works.
Market players in Italy continue to keep a very close eye on developments regarding major domestic flat steel producer Ilva. On September 26, an investigating judge in Taranto where Ilva is based rejected the €400 million environmental plan presented last week by Ilva chairman Bruno Ferrante. Meanwhile, trade unions have called for a two-day strike in protest against the planned shutdown of production at Ilva. In the latest development, Mr. Ferrante has stated that he will lodge an appeal against the decision of the investigating judge. While the risk of a shutdown has increased, Italian market players are almost unanimous in saying that it will be difficult for domestic flat steel prices to increase. Indeed, downstream demand continues to be very low. At most, the erosion of prices may come to an end. However, there is a great degree of uncertainty in the market and currently it is not easy to make predictions.
€1 = $1.29