The Italian flat products market is still characterized by a weak trend, and hoped-for signs of a rebound in the first quarter of 2008 seem to be receding into the distance.
For the whole month of November, quotations remained stable overall except for a decline of a few euro. The Italian flats market still lacks spark due to the weakness of apparent consumption and the slowdown of real demand.
The service centers are complaining about serious difficulties in passing on to the downstream side the high prices which they paid to producers. They cite the main reasons for this as being the weakness of the market and the very strong levels of competition.
Real demand is in a bad state, having declined due to seasonal factors and the difficulties facing end-users. It should also be remarked that there is currently a slowdown in the construction sector. In contrast, the automotive sector is performing strongly at the present time.
Looking in the direction of supplies, arrivals of material from non-EU countries are falling. Due to the high level of flats prices in the international market and the effect of official export policies in the Far East, imports are proving less attractive and not very competitive compared to the current quotations heard in the Italian flats market.
Turning to the near future, those in the market believe that substantial stability will characterize the market at the year-end; in order to see changes, they say it may be necessary to wait for the second quarter of 2008. ArcelorMittal has already indicated that it will increase its flats prices in Europe from the month of April. The company said that the prices hikes were necessary due to the rises in raw material costs and freight rates.