Prices have not changed significantly in the Italian flat steel market in the past two weeks and mills are reported to be sticking firmly to their prices. SteelOrbis has learned from market sources that steelmakers and buyers are engaged in an arm-wrestling match, with the former seeking to prevent prices from entering a downward trend, while the latter are striving to defend their margins in a context of slow demand. In the coming weeks the situation should become clearer. At any rate, service centers and end-users appear a little more optimistic now - even though they are cautious in managing their stocks - due to anticipations of some progress in the market in springtime.
Currently, local base prices for flat steel have not changed significantly in Italy; hot rolled coils (HRC) stand at around €630-640/mt, while local cold rolled coils (CRC) and hot dip galvanized coils (HDG) are at €700-720/mt and €680-700/mt respectively.
On the import side, activity is limited. Local buyers, despite the weakness of the US dollar and the competitiveness of Chinese offers, are not very willing to take risks, due to long lead times and the uncertainty in the market. Generally speaking, the international market is trying to come to terms with the political upheaval in North Africa.
In conclusion, most market players expect that the Italian steel market will remain more or less stable until the end of March, though prices could indicate some upward movement. From April on, provided there are no surprises, transaction activity should start to increase, with prices rising also.