According to market sources, hot rolled coil (HRC) prices have trended sideways in the Italian market in the past week, remaining at €405-415/mt ex-works. In particular, Arvedi and Marcegaglia are now offering HRC at €410/mt and €415/mt respectively, ex-works, for delivery in December and January, but sources underlined it is still possible to close deals at slightly lower levels.
All eyes are still on the Ilva crisis as ArcelorMittal and the Italian government are now negotiating a new industrial plan that could help avoid the risk of the largest integrated steel plant in Europe closing. Whatever happens, market sources are still concerned about the availability of flat steel products. Due to the Ilva situation and the output cuts by other European steelmakers, most sources believe domestic prices will remain strong at least for the next two months. This is why purchasing activities, in the import segment specifically, have increased somewhat in the past few weeks, although consumption has remained lackluster, according to sources. Also, it seems now that most buyers have sufficient supplies after having restocked in past weeks.
Concerning the import market, market sources have reported ex-Turkey HRC offers at €430-440/mt CFR Italy for February shipments. These are considered to be out of the market price range though, one source said.
As for the northern European market, prices have increased slightly from last week, rising from €410-425/mt to €415-425/mt ex-works.