The Italian flat steel market continues to struggle with low demand and a shortage of liquidity. The base prices of flat steel coils are unchanged from last week: hot rolled coils (HRC) are offered at €510-520/mt ($645-658/mt), cold rolled coils (CRC) are at €590-600/mt ($746-759/mt), while hot dip galvanized (HDG) coils cost €560-570/mt ($708-721/mt). All the above prices are ex-works.
Nevertheless, at the European level decreases in July production prices are likely to emerge, most likely amounting to €15-20/mt ($19-25/mt). In the Italian market, buyers' requests for lower prices from producers and service centers have recently become more pressing.
Market players consulted by SteelOrbis speak of a further contraction in demand. Accordingly, production has been slowing down in order to adapt outputs to the flow of orders. Meanwhile, the effects of the current financial crisis continue to be felt, causing market players to be more cautious.
As expected, import activity languishes amid a lack of competitive offers and the ongoing weakening of the euro against the US dollar.
€1 = $1.265