While it is still not possible to describe demand as strong in the flat rolled markets in southern Europe, steel producers in the region have nevertheless been trying to increase their sales prices.
Until very recently, Italian producer Ilva was forced to cut its hot rolled coil prices down to €350/mt ($524/mt) ex-works, mainly due to the highly competitive prices coming from China as well as from traders who had booked from China and were offering to Europe. Now, however, as offer levels from China and the CIS countries indicate an increase, Ilva is able to offer material at €370/mt ($554/mt) ex-works.
Russian producers are increasing their offer levels for southern Europe. CIS offers, which had recently fallen as low as €350/mt ($524/mt) CFR, have now started to rise. Severstal offers for hot rolled coils to southern Europe currently stand at €370/mt CFR ($554/mt), while another Russian mill is heard to be offering at €360/mt ($539/mt) CFR.
Ukrainian mill Zaporizhstal is offering hot rolled coils to the European markets at $515/mt FOB, and is offering cold rolled coils at $625/mt FOB.
Chinese offers for hot dip galvanized coils are also picking up, with offers for 0.4 mm 100 gr/m2 zinc coating material now at $830/mt CFR. Meanwhile, Indian origin material of the same specifications is offered at €530/mt ($793/mt) CFR.
Plate prices in Italy currently stand at €350-360/mt ($524-539/mt) ex-works. It is also heard that plate offers to Italy from Brazil are now at around €365/mt ($546/mt) CFR FO. Plate demand is slow at present, just like demand for other flat steel products.
At a time when the Italian flat rolled market is preparing for the end of the year, market players are wondering how the destocking activities of stockists in this market will be influenced by the rising trend of the steel mills' prices.