Compared to last week the Italian flat steel market has not changed much. Hot rolled coils (HRC) are still offered at the base prices of €490-500/mt ($632-645/mt), cold rolled coils (CRC) are at around €560-570/mt ($722-735/mt), while hot dip galvanized (HDG) coil prices are standing at €540-545/mt ($697-703/mt), all ex-works.
For now, no further negative measures are being taken against major domestic steel producer Ilva following the shutdown of its crude steel production facilities, while the investment plan of the company is awaited. The flat steel market situation in Italy remains uncertain and so it is difficult to make predictions for the short-to-medium term. Market players are not able to say if prices will drop or if they will rise by a few euro, but for the short term no significant changes are expected.
Domestic flat steel prices have been unchanged since the beginning of August, but local producers are flexible with customers who are willing to buy. In general - and this is nothing new - the high level of uncertainty is pushing steel mills to be cautious and to maintain low stock levels (sufficient for an average of 1.5 months).
Meanwhile, on the import side, the decline of foreign offers (mainly due to the influence of China) does not seem to have given rise to large purchases, partly due to the lack of end-user demand and the climate of uncertainty, partly because of the long lead times falling in December and January. Operators consulted by SteelOrbis also advance the hypothesis of a turnaround, heralded by the slight recovery in iron ore prices in recent days and the recent rebound in Chinese flat steel offers.
€1 = $1.29