Latest situation in Italian flat steel market

The situation in the Italian flat steel market has remained difficult as final consumption is still very weak, especially amid the crisis in the automotive sector. Several sources reported that, after relatively lively activities in May following the easing of lockdown measures, the situation now appears negative again in June in terms of orders. "There is no confidence in the future," said one market source. However, domestic flat steel prices have recorded only slight decreases in the past week, after one month of decreases. Local steelmakers, after seeing their margins decline, no longer seem willing to concede further reductions. "Local mills have reduced their output and are offering material for September deliveries," said one distributor. Currently, local HRC base prices are at €385-400/mt, while CRC and HDG coil prices are at €475-485/mt and €480-490/mt respectively, all ex-works.