Currently, domestic producers’ base prices in Italy are at €425-435/mt ($584-598/mt) for hot rolled coils (HRC), €500-510 ($670-701/mt) for cold rolled coils (CRC) and €480-490/mt ($660-674/mt) for hot dip galvanized (HDG) coils, all ex-works.
Local flat steel prices in Italy have decreased compared to early October, even though the volume of activity - according to operators surveyed by SteelOrbis - was slightly better compared to the same period last year. Prices have been influenced primarily by the depreciation of the dollar.
Internationally, flat steel prices have decreased by €20-25/mt (27-34/mt) in the past month. In Italy, there have been similar reductions, and, although producers have tried to keep prices stable as much as possible, they have been forced to concede discounts in order to close transactions. At present, end-users seem cautious, and service centers too, as they are buying from producers only what is strictly needed. The general feeling is that the market is waiting for bottom price levels to be reached, even if inventories are not high. Although some producers are expecting price decreases similar to those which have already occurred, others believe that in the medium term there will be limited decreases as margins are already extremely tight.
Consumption also will be limited due to the approach of the winter. In conclusion, most local market operators are waiting to see how far prices will drop.
€1= $1.375