In the Italian steel market, hot rolled coil (HRC) base prices continue in the range of €525-535/mt ex-works. Therefore, the increase previously sought by some steel mills has not occurred, and, indeed, it is possible to talk about a retreat in prices in everyday practice, with offers at €505-515/mt ex-works. Demand continues to be very weak and increases have no support. At the same time, no one is willing to lower their prices since profit margins are already very tight. Consequently, producers have hardened their position and are seeking to cling to current prices.
As for cold rolled coils (CRC) and hot dip galvanized coils (HDG), for the first product there has been a €10/mt decrease, with offers now at €590/mt ex-works but lower deals are also heard at €570/mt ex-works; with regard to HDG, the price range remains at €550-560/mt ex-works. In general, orders are few and the downstream market craves discounts.
Meanwhile, warehouse procurements proceed slowly: stocks are very low at service centers, and even lower among consumers. This is mainly due to factors such as fluctuations in prices and weak demand caused by a lack of confidence in the sustainability of prices at current levels. On top of this, the financial situation of most market operators cannot not be described as positive at present.
For the future, the situation remains uncertain, both in the light of the abovementioned problems and also taking the European debt crisis into account.
With regard to the import/export market, at Italy's ports volumes of flat steel products are very small, while foreign suppliers' offers are unable to attract interest from Italian buyers.
Looking abroad, it is seen that the prices of flat rolled products are declining or at best unchanged in foreign markets. In particular, local HRC prices have decreased in China, Turkey and the United States.