In the southern European flat steel markets, flat steel offers coming from non-
European Union countries have started to soften beginning from late March due to weak demand and the strengthening of the euro against the US dollar. Buyers are now delaying their bookings and prefer to wait.
In the Italian flat steel market,
Ilva is expected to announce its new prices. In March,
Ilva's local hot rolled coil (
HRC) price was standing at €610-620/mt ($865-879/mt) ex-works. The widespread expectation in the market suggests that this price range may decline due to the strengthening of the euro against the US dollar and decreasing import offer levels. It is reported that market players think that
Ilva's local
HRC offers may decrease to €580/mt ($822/mt) ex-works, for June production.
In our previous report, we had stated that ex-
CIS and
Turkey flat steel offers to southern
Europe had declined as compared to previous weeks. It is reported that Ukrainian
HRC offers to the Italian market have regressed to the price level of $700/mt CFR, while Turkish
HRC offers to
Italy have declined to the level of €555/mt ($787/mt) CIF. SteelOrbis has also learned that demand for hot dip galvanized (HDG) coils and pre-painted galvanized iron (PPGI) has recently contracted more than demand for other flat steel products.
€1 = $1.418