Have local flat steel prices in Italy reached the bottom?

After a period in which prices dropped significantly, in the last 15 days the flat steel market in Italy has generally been showing a neutral trend. Although it might be too early to state it with certainty, flat steel prices in the local market already appear to have hit the bottom. At present, hot rolled coils (HRC) base prices have even risen by €10/mt ($14/mt) compared to last week. Although local mills favored an increase of €20/mt, their price idea has not been fully accepted by buyers.     
 
Currently, in the Italian flat steel market, local base prices for hot rolled coils (HRC) stand at around €540-550/mt ($773-787/mt), while cold rolled coils (CRC) and hot dip galvanized coils (HDG) are respectively at €610-620/mt ($873-887/mt) and €590-600/mt ($844-858/mt). All prices are ex-works.
 
In the meantime, the international flat steel market continues to be sluggish. In the Chinese market, for example, flat steel quotations have been fluctuating just slightly, with no significant changes. Generally speaking, at the moment Italian flat steel buyers are not showing interest in imports, as offers have risen on the back of the recent strengthening of the US dollar against the euro. Currently, import prices for Turkish HRC stand at $820/mt CFR.
 
In conclusion, most market operators tell SteelOrbis that in the next few weeks flat steel prices in the local Italian market are expected to follow a neutral trend. In fact, steelmakers' profit margins are already tight, and thus there does not appear to be room for further decreases. Moreover, raw material prices in the global markets continue to stay at relatively high levels.