Decreasing prices, low demand, difficulties in collecting payments, tight margins and very low stocks - this sums up the situation in the Italian flat steel market.
Currently, domestic producers' flat steel base prices are at around €420-430/mt ($559-572/mt) for hot rolled coils (HRC), €490-500 ($652-665/mt) for cold rolled coils (CRC) and €470-480/mt ($625-638/mt) for hot dip galvanized (HDG) coils, all ex-works. Accordingly, in the past week a drop of about €10/mt ($13/mt) has been recorded on the lower ends of the CRC and HDG price ranges.
Market sources consulted by SteelOrbis lament the absence of demand and profit margins, and state that they are operating with extremely slender warehouse stocks. At the same time, the same operators continue to emphasize the seriousness of problems as regards collection of payments.
Amid competition from imports and the need to attract orders, Ilva is being particularly aggressive in its offer prices, also undercutting other domestic producers. Also, the Taranto-based steelmaker will stop its blast furnace No. 2 for three months starting from early July.
€1 = $1.33