In the Italian flat steel market - as indeed in the overall Italian steel market - the situation continues to be anything but positive. For now, hot rolled coils (HRC) are still offered at the base prices of €490-500/mt ($617-630/mt), cold rolled coils (CRC) are at around €560-570/mt ($705-718/mt), while hot dip galvanized (HDG) coil prices are standing at €540-545/mt ($680-687/mt), all ex-works.
While attention continues to be focused on the fate of major domestic flat steel producer Ilva, the steel producer continues to accept orders for the moment and has been offering its own material at €10-20/mt ($13-25/mt) more compared to the end of July, just like other domestic producers. Nevertheless, there is a willingness among local producers to come to a compromise with customers who are interested in buying.
In general, however, the market is still quiet, mainly due to low demand and the lack of orders in the end-use sector, and this causes service centers and also steel producers to maintain their stocks at very low levels. The situation is exacerbated by the collapse of Chinese prices: import offers are starting to be more attractive compared to those of domestic producers. Traders will likely seek to conclude transactions in order to obtain material for December and January, but at the moment they are also very cautious and are waiting to see how far prices will drop. In the meantime, a decision is awaited on antidumping measures against pre-painted flat steel products coming from China. The setting of a duty (possibly of 30-40 percent) could trigger increased competition within the European market and could also lead to an increase in the volume of offers from India.
€1= $1.26