There is no good news to report from the Italian flat steel market. The effects of the crisis continue to be felt, especially in the end-user market, where there is still great difficulty in finding orders and where there is little inclination to build up stocks. Furthermore, there are problems related to receiving credit and also in obtaining payments. In addition, the result of Italy's parliamentary elections leaves no hope for a rapid implementation of reform measures for the economy. On top of all this, very strong competition is witnessed in the Italian flat steel market and margins are being squeezed due to the constant weakening of prices.
SteelOrbis has learned that Italian producers' base prices are at around €480/mt (624$/mt) for hot rolled coils (HRC), €560/mt (728$/mt) for cold rolled coils (CRC) and €530-540/mt (689-702$/mt) for hot dip galvanized (HDG) coils, all ex-works.
Amid low demand, market players are avoiding high stock levels. For the same reason, Italian steel producers are inclined to reduce their output. Production at the Ilva plant in Taranto is on the scarce side and irregular. Nonetheless, there are no difficulties in finding material in the market. According to sources consulted by SteelOrbis, there is no evidence to suggest an increase in prices will be seen in the short-to-medium term.
€1 = $1.30