According to market sources, transaction prices in the local Italian hot rolled coil (HRC) have increased by €5/mt on average to €475-485/mt ($537-548/mt) ex-works in the past week, due to the recent increases in ex-CIS slab offers and in import offers from Turkey, which in turn were due to the increase in global raw material prices. At the moment, local Italian buyers are unwilling to buy import HRC as they are priced at the same levels as domestic HRC, or are even more expensive. Meanwhile, ArcelorMittal has announced a €30/mt increase in flat steel prices for April and May deliveries, after the €30/mt increase announced at the end of January. ArcelorMittal and other Italian mills are now targeting a price of €510/mt ex-works, but most local buyers are still in wait-and-see mode. "Transactions volumes are not as good as six months ago, because buyers are not convinced that prices will hold firm in the coming period," a market source underlined. However, most sources do not foresee any significant price decrease in the European flat steel market during the second quarter, as distributors should step up their purchasing activities in order to fill their stocks.
€1 = $1.13