Domestic, import HRC prices rise in Italy

Monday, 18 November 2019 17:22:44 (GMT+3)   |   Brescia

The Ilva situation is still propelling increases both in domestic and in import hot rolled coil (HRC) prices in the Italian market. Most market sources are bullish on the prospects for the market trend because of expected supply disruptions, even though domestic demand has not increased significantly yet. Local transaction prices have increased in the past few days from €390-400/mt to €400/mt ex-works, while in the official offers domestic suppliers are aiming at a minimum level of €410/mt ex-works for January. Owing to the Ilva crisis and the temporary reduction in coil production by Arvedi (due to technological upgrades), foreign suppliers are trying to increase their HRC offers to the €420/mt CFR Italy level and higher, while earlier €405-415/mt CFR levels were available. This is particularly true for Turkish mills, as a result of increased HRC prices and demand in their domestic market, and firm scrap prices as well. HRC from Turkey is generally offered to Italy for end of January-February shipments. Due to the same factors, HRC prices are expected to rise in northern Europe too, also owing to better demand levels on the heels of some restocking activity. According to sources, transaction prices are now in the range of €410-425/mt ex-works, increasing by €5/mt on the higher end compared to last week.

 

 

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