Fears of further declines in depressed Italian flat steel market

Friday, 12 April 2013 11:01:50 (GMT+3)   |   Brescia
       

Following the decision of Italy's Constitutional Court approving the constitutionality of the law passed last December to ensure the continuation of operations of Taranto-based Italian steel producer Ilva, lawyers for Ilva have already demanded the return of steel products previously seized by Taranto prosecutors. Among the Italian flat steel market players consulted by SteelOrbis, there now exists much concern. There are fears that domestic flat steel prices, which have been slipping in recent weeks, could fall further, thereby eroding already tight or inexistent margins. Beyond the price trend, market operators are worried about the stalemate in demand, the scarcity of jobs, the lack of liquidity and, more generally, the absence of a government to implement measures aimed at achieving an economic recovery.

Currently, domestic producers' flat steel base prices are at around €460-470/mt ($603-616/mt) for hot rolled coils (HRC), €545-550/mt ($714-721/mt) for cold rolled coils (CRC) and €515-525/mt ($675-688/mt) for hot dip galvanized (HDG) coils, all ex-works.

Italy's flat steel import market has been quiet since last November, especially as regards material coming from Asian markets: flat steel from China and India in particular continues to be characterized by excessively high prices. 0.6 mm HDG from India to Europe costs about €620/mt ($812/mt) FOB.

€1 = $1.31


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