According to market sources, Italian producers' domestic hot rolled coil (HRC) base prices have decreased by €10/mt over the past week to €450-460/mt ($518-529/mt) ex-works, while their cold rolled coil (CRC) prices and their hot dip galvanized (HDG) prices have trended sideways at €550-560/mt ($633-644/mt) and €555-565/mt ($638-650/mt) respectively, all ex-works.
Demand in the local Italian flat steel market is still at low levels, especially since service centers have adequate stocks. However, as reported previously, European flat steel producers are seeking to increase their prices in February, due to several factors, namely, the imminent imposition of EU definitive safeguard measures, the ongoing increase in raw material prices internationally, and the recent dam burst in Brumadinho, Brazil, which has already had an impact on international iron ore prices.
Lastly, market sources have reported that ex-Turkey HRC offers have increased to €465-475/mt ($535-546/mt) CIF Italy. In addition, European producers may announce a €20-30/mt increase in the coming period, but they are not sure that the new prices will be absorbed in the market due to the ongoing slackness of demand, market sources stated.
€1 = $1.15