Since the end of the holiday season, the Italian flat steel market has been witnessing a series of increases. Accordingly, producers have raised prices by a few dozen euro, bringing base prices up to €520-530/mt ($671-684/mt) for hot rolled coils (HRC), €590-600/mt ($761-774/mt) for cold rolled coils (CRC) and €570-580/mt ($735-748/mt) for hot dip galvanized (HDG) coils.
According to sources consulted by SteelOrbis, this upward trend is expected to last throughout March, as iron ore prices remain high and the euro is still weak against the US dollar. In addition, ArcelorMittal has recently announced it is seeking a €30/mt ($39/mt) increase in strip prices for March deliveries as compared to prices for February deliveries. From April onwards, everything appears uncertain, but market players believe that it is very unlikely that a change will be seen in the price tendency.
Meanwhile, in the Italian domestic market, downstream demand remains very low as industrial activity is weak. End-users saw that prices had reached bottom levels towards the end of last year and so concluded purchases; now, however, no one is thinking of placing new orders.
As for the export markets, some traders report being satisfied with the volume of orders placed in North Africa (particularly Algeria), Sudan and in Middle Eastern countries such as Oman and Saudi Arabia. Concerning flat steel imports, Chinese offers on dollar basis are more attractive than a few weeks ago, but they are not competitive yet.