SteelOrbis has learned that in the past month sales have increased slightly in the Italian flat steel market, especially due to seasonal factors. Nevertheless, the situation in the market remains uncertain, mainly because of the difficulties faced by the country's largest flat steel producer, namely, Ilva. Nevertheless, sources believe that, if Ilva were to resume its normal activities, local prices now would be at the levels recorded at the end of last year, because producers would aim to give prices that would guarantee adequate sales volumes.
Meanwhile, the global market does not show signs of any price recovery in the short term, while there is a lot of uncertainty regarding prices and the situation is not helped by the performance of raw materials, such as iron ore, coal, and oil, nor by the value of the euro either.
Even though consumption is not at strong levels, several large Italian consumers cover part of their needs with imports from abroad, both due to the current difficulties of Ilva and to protect themselves from the possibility of further logistics problems in the domestic market. Prices of hot rolled coils coming from the import market are at around $385/mt CIF.
Arrivals from abroad should increase modestly in April and May, especially cold rolled coils from China, but also hot rolled coils in general, due to the uncertainties relating to Ilva. The recent strike of lorry drivers and workers at Ilva also contributed to keeping stock levels low in all the national territory.
Currently, domestic producers' base prices in Italy are at around €400/mt for hot rolled coil (HRC), around €450/mt for cold rolled coil (CRC) and at €450-460/mt for hot dip galvanized (HDG) coil, all ex-works.
Operators interviewed by SteelOrbis are inclined to believe that in the short-to-medium term prices will not decrease significantly in the international market.
€1 = $1.13