In the coming weeks Italian steel producer Marcegaglia is to increase its prices for cold rolled coils and hot dip galvanized in Europe by Euro 20-40 for the second quarter of this year. Company officials have stated that the increase may be introduced gradually in two or three steps, and may also vary from region to region.
There is currently a lot more market action in Europe than in Italy, where the situation can nevertheless be described as solid. Mauro Brogi of Marcegaglia explained the reasons behind the increase: "Italy has always received evolutions in prices quicker that the other European countries...This is why we are obliged to reposition our quotations in the European market at a higher level, in line with the international trends."
Marcegaglia's upward price adjustment will be in the range of Euro 20-50 for the second quarter, when their planned price increase of up to Euro 50 for welded tubes is taken into account. Mr. Brogi commented, "Hot rolled coils have everywhere been able to follow the price trends in the international market. However, cold rolled coils and hot dip galvanized have only partly been able to do this...Today in Italy, we see quotations for hot dip galvanized at Euro 650/mt ex-works, while cold rolled coil quotations are at Euro 610/mt ex-works."
According to Brogi, the main reasons behind the current solidity of the steel market are to be found in the international market which is generating an ever-increasing consumption of steel. Europe is not immune to this market dynamic even if it is only being dragged along. He continued, "The picture presented by the world market is certainly a positive one. China, India, Russia and Brazil are showing intense growth...further upward movements in price quotations are not to be excluded."