Even if it is still too early to understand the trend of the Italian flat steel market after the holidays, it seems that the market will move in an upward direction in line with the €20-25/mt ($22-27/mt) hikes announced by producers Marcegaglia and ArcelorMittal. The domestic steel industry is facing financial problems and companies cannot continue with zero or negative margins. Accordingly, a price increase will be seen even without an improvement on the demand side.
A positive factor in the Italian flat steel market is the decrease in average stocks levels. Some companies in Italy buy from the EU, while other companies have bought from alternative sources in past months, paying lower prices. The former will most probably increase their prices in March and April, while the latter will receive their cargos in April and May and will have greater room to sell at more attractive prices in order to attract more business.
In the Italian domestic market, average base prices for hot rolled coil (HRC) are at €295/mt ($319/mt), while cold rolled coil (CRC) prices are at €360-365/mt ($388-395/mt) and hot dip galvanized (HDG) prices are in the range of €345-350/mt ($373-378/mt), all ex-works.
On the import side, there will be significant arrivals of tonnages during the coming months, while at present there are still no new offers as the long holiday period has just ended.