The Italian flat steel market has not observed any significant change compared to the previous week. Final demand remains lackluster and steel service centers say that buying activity from end-users is poor and exclusively based on immediate day-to-day needs.
Currently, in the Italian domestic market, base prices for hot rolled coils (HRC) still stand at €525-535/mt ($714-728/mt) ex-works, and cold rolled coil (CRC) base prices are still unchanged at €590-600/mt ($802-816/mt) ex-works. Hot dip galvanized (HDG) base prices have increased by €10/mt ($14/mt) at the upper end of the range to €560-580/mt ($762-789/mt) ex-works. Despite the low demand, local steelmakers are expected to push up prices in the near future, with a price idea for HRC at €535-545/mt ($728-741/mt), in order to widen their profit margins and match quotations in the international markets.
On the import side, nothing has changed from our last report. Offers from foreign suppliers continue to be too high for Italian buyers at the moment.
In conclusion, the Italian flat steel coil market continues to mirror the uncertainty of the local economy, and liquidity difficulties for companies have also to be taken into account.