The Italian flat steel market has lately been moving on an upward trend. In late November, when prices price levels had hit the bottom, all operators in the market had replenished their stocks. Since then, prices have increased by at least €10-15/mt ($14-21/mt) for December deliveries, while for January shipments Italian producers are seeking further similar increases.
End-users continue to ask for lower prices citing the weakness of demand, but eventually they are forced to pay a little more compared to the prices seen at the end of November and, according to market sources, they will have to brace themselves for further increases at the beginning of the New Year. Local producers appear determined to maintain a firm stance on prices, and in January they will ask for a further increase. After several months in which margins were really low or nonexistent, they are now aiming for a recovery of profitability.
Currently, Italian producers' base prices are at €435-440/mt ($596-603/mt) for hot rolled coils (HRC), €510/mt ($699mt) for cold rolled coils (CRC) and €495-500/mt ($678-685/mt) for hot dip galvanized (HDG) coils, all ex-works, for deliveries in February and March.
€1= $1.37