Contrary to market players' expectations, in the last two weeks there has not been any price increase in the local Italian HRC market due to the lack of vitality of demand. SteelOrbis has learned that flats prices in the Italian market are stable at the moment, still at the same levels as two weeks ago. Currently, local Italian offers for HRC are at €330-335/mt ex-mill with 60-day delivery and two-month deferred payment. Producers would like to increase prices by more than €50 €/t but find that the market is not inclined to accept such a price rise.
On the CRC side, offers have broken through the €400/mt barrier and are now standing at an average price of €420/mt while HDG prices are at €410/mt. Both prices are ex-mill with 60-day delivery and two-month deferred payment.
On the import side, Italian buyers are not showing interest in foreign offers, due to long delivery times and the transport costs involved. Offers have been heard at €320/mt CIF from Brazil and Canada, and at €340/mt CIF from Turkey.
Everyone in the Italian market thinks that prices will not decrease in the near future, but that instead a period of price stability is likely for the next three to four months. Furthermore, an increase in apparent consumption is expected during the last quarter of 2009.