In the Italian flat steel market, demand remains sluggish and buyers are very cautious as regards purchase activity in the market. Local service centers are more and more aggressive in their attempts to attract orders, although there is limited room for reducing their offers since profit margins are already tight. Moreover, flat steel sales to end-users have been lower than expected, service centers' inventories have started to rise again.
Currently, in the local Italian market, base prices for hot rolled coils are more or less stable at €530-550/mt; cold rolled coil base prices have risen by €10-20/mt because of the tighter supply level compared to other flat steel materials; and hot dip galvanized coils are quoted at €580-590/mt, with a slight decrease compared to the price level observed at the end of May. All prices are ex-works.
On the import side the situation is even weaker, not only because demand from end-users is still low, but also due to the continuing volatility of the euro/US dollar exchange rate and the fact that the gap between local prices and import offers is too narrow to stimulate the interest of Italian flat steel buyers, who are also anxious to avoid the long lead times involved in importing.