As expected, producers in the local Italian flat steel market have increased their prices for January output, with domestic prices in the market rising slightly over the past two weeks. Accordingly, in the given period, hot rolled coil (HRC) base prices have increased by €5/mt on average to €505-515/mt ($596-608/mt), while domestic cold rolled coil (CRC) and hot dip galvanized (HDG) coil prices have increased by €10/mt to €600-615/mt ($720-726/mt) and €585-595/mt ($690-702/mt) respectively, all ex-works.
According to market sources, Italian producers are aiming to increase their prices further. ArcelorMittal would like to raise its HRC prices to €520-525/mt ($614-620/mt) at least, citing the uptrend of scrap prices. Meanwhile, flat steel demand in Italy is at normal levels, taking into account the time of the year. Sources said that in the early part of December there has been a revival of purchases by distributors, supported by the lack of cheap import offers. On the other end, end-user demand has remained weak. According to market sources, with the approach of the Christmas holidays, there will not be any significant activity in the market and this situation is not expected to change until the beginning of the new year.
€1 = $1.18