In the past two weeks, Italian flat steel producers have witnessed a fall in prices that only now seems to have stopped. SteelOrbis has learned that hot rolled coil (HRC) base prices in Italy stand at €455-460/mt ($614-621/mt), while cold rolled coil (CRC) base prices are at €540-550/mt ($729-743/mt). Concerning hot dip galvanized (HDG) coils, the price is closer to €500/mt ($675/mt) but has not descended to this level yet, still mostly at €510/mt ($689/mt).
Currently, there are no signs of further decreases, but end-user demand continues to be very weak. This situation is worsened by economic concerns and uncertainties. The only bright spot, so to speak, seems to be the recent increase in the price of iron ore in the international market, which leaves hope for some recovery in the flat steel market in the short term. Anyway, it remains to be seen if the iron ore recovery will have a stronger influence than the weak demand in the market, where operators continue to deal with increasingly narrow margins.
In the Italian flat market, stocks remain low in spite of the fact that the end of the year is approaching. In recent weeks, with price reductions having already been predicted, purchasing activity has mostly been aimed at meeting urgent needs. The market uncertainty and volatility, of course, continue to restrict the volume of long-term orders, although markets insiders are optimistic about the prospects for their performance in Q1 2012.
With regard to imported material, volumes are not excessive at Italian ports, and there are no arrivals of large tonnages. In the current situation, in fact, importers find it difficult to sell materials which they had purchased months ago.