Hot rolled coil (HRC) prices have trended sideways in the Italian domestic market compared to the beginning of this week. As reported previously, local mills have kept offering December-rolling material at cheaper prices in the spot market, as some buyers in the automotive sector cancelled their orders previously.
Local producers are offering their December production at about €860-870/mt ex-works, while they are targeting €900-930/mt levels for January production, both ex-works. However, so far orders have been placed at prices not higher than €900-910/mt ex-works, according to sources.
Transaction prices have looked more stable in the Italian market in the past month, after maintaining a downtrend from late July to late October.
Meanwhile, sources have told SteelOrbis that an Italian producer has sold HRC to northern Germany at €930-940/mt delivered (with transport costs at €70-80/mt). The same producer is said to be short of scrap, which is why it has been increasing its purchase prices lately.
Market players are mostly confident the situation will be better in the first quarter next year, due to high costs, expectations of an improvement of demand from the automotive sector, and an expected decrease in domestic supply in Europe - as exports to the US will increase after the decision to replace US Section 232 tariffs on European steel imports with a tariff-rate quota.