The Italian flats market continues to lack spark, even though there are some signs that a rise in quotations is on the cards for January 2008.
After producers' post-summer attempt to up prices and the partial slide seen in recent weeks, the Italian flats market is still struggling due to the weakness in apparent consumption and the slowdown in real demand.
The current period is also difficult for the service centers: they have not been able to pass on to downstream customers the increases which they paid to producers, because of the weakness of the market and the strong levels of competition.
As regards real demand, players in the market report a sharp fall-off, especially in demand from the construction sector. Due to global economic factors, uncertainty and lack of confidence are weighing heavily on the current market.
Furthermore, the drop in the value of the US dollar against the euro has made exportation more difficult, while at the same time facilitating imports from non-EU countries. Nevertheless, arrivals from overseas have registered a strong decline due to the cancellation of the Chinese export rebate and the reduced ability of imports to compete in terms of prices.
Previsions for the near future point to stability up to the end of the year and probable increases in quotations in the first quarter of 2008.
The indications coming from the producers indicate that price increases will be necessary in January on account of the rising raw material prices and the soaring freight charges. Similar signals are being emitted by the service centers, as they need some relief for their squeezed margins.