Local flat steel prices in the Italian market have been decreasing over the past 10 to 15 days. About a month ago, negotiations took place at around €410/mt ($554/mt) ex-works for hot rolled coils, and local producers aimed to increase their prices to €430/mt ($581/mt). At present, however, decreases of €10-15/mt ($14-20/mt) have been observed compared to the levels seen at the beginning of July.
Currently, domestic producers' base prices in Italy are at €400-410/mt ($540-554/mt) for hot rolled coils (HRC), €485-490/mt ($655-662/mt) for cold rolled coils (CRC) and €455-460/mt ($614-621/mt) for hot dip galvanized (HDG) coils, all ex-works.
Demand remains generally static, albeit occasionally characterized by brief increases in momentum. Local sources point out that, although Taranto-based Ilva produces half of what it once produced, local flat steel prices have failed to move upwards, but rather continue to suffer from mild erosion and fail to guarantee adequate margins. Moreover, sources note with some concern that even in Germany the situation has appeared less favorable in the recent period, and that flat steel prices in the German market have decreased, drawing closer to the Italian price levels. Meanwhile, import offers are still not competitive at all, since domestic prices are very low in Italy. According to local sources, galvanized product prices continue to be particularly weak in the Italian market, especially for thinner materials.
€1 = 1.35$