SteelOrbis has learned that in the Italian market domestic producers' hot rolled coil (HRC) base prices are currently at €550/mt ($682/mt) ex-works, indicating a slight increase compared to last week. Producers are trying to get at least €560/mt ($694/mt) ex-works for April deliveries, but very small volumes have been transacted at this price level so far. According to sources, overall purchases by Italian service centers are modest due to the fact that price increases have not been completely absorbed in the end-users' market yet. Meanwhile, pipe manufacturers are much more inclined to purchase.
Among the reasons for the ongoing price increases, there is not only a lack of import arrivals, but also low competitiveness of import offers. This lack of strong competitive pressure means that suppliers are basically the same both in southern Europe and in northern Europe, explained one source. As a result, the traditional gap between prices in northern Europe and those in sourthern Europe has shrunk greatly for the first time in a very long period.
€1 = $1.24