Pending a resolution of the impasse surrounding the seizure of products of Italian steelmaker Ilva by order of the Court of Taranto, many market operators have been obliged to seek alternative sources of flat steel supply. Therefore, it is expected that various volumes of flat steel products will arrive at the ports of Marghera and Ravenna in January and February, coming from China, Turkey, Russia and South Korea. Traders consulted by SteelOrbis reported that hot rolled coil (HRC) import prices are at around $590-600/mt CFR Italian ports with payment 90 days after the date of the bill of lading.
In the Italian domestic market, flat steel base prices, which had been increasing in recent weeks due to the impact of the Ilva case, have stabilized at around €520/mt ($681/mt) for HRC, €580/mt for cold rolled coils (CRC) and €570/mt ($747/mt) for hot dip galvanized (HDG) coils, all ex-works.
Downstream demand remains extremely low and - according to market insiders - it has slowed further in recent days. The political situation in Italy - which is unable to instill even the slightest dose of optimism - and the upcoming Christmas-New Year break are factors which have contributed to the slowdown in the market.