Flat steel prices trend down in southern Europe amid weak demand

Wednesday, 19 October 2011 15:36:01 (GMT+3)   |  

In the Italian domestic flat steel market, demand is weak and prices are on a slight downward trend. In the local Italian market, although hot rolled coil (HRC) base prices stand at €510-530/mt ex-works, transactions are reportedly being concluded generally at €510-520/mt ex-works. In the meantime, cold rolled coil (CRC) prices in the Italian domestic market are at €570-590/mt ex-works. It is thought that, if the strengthening of the euro against the US dollar continues, import offers to Italy may become more attractive and, if demand continues to remain silent, producers may further decrease their prices.

In the Portuguese flat steel market, domestic prices have decreased in line with weak demand. It is reported that HRC prices in the Portuguese market have come down to €590-595/mt ex-warehouse, down from €610/mt ex-warehouse in previous weeks. In the meantime, local producer Lusosider is offering hot dip galvanized (HDG) coil to its domestic market at €600/mt ex-works. Portuguese market insiders polled by SteelOrbis state that both domestic HRC and Lusosider's HDG coil prices may drop by €10-15/mt in the coming days.

In Greece, the flat steel market is still sluggish. It is learned that Greek buyers are not showing interest in import offers and that they are delaying their bookings, as they consider that prices have yet to reach the bottom. In the meantime, Turkish steel producers' HRC offers at $680-700/mt FOB are above Greek buyers' price expectations.


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