The situation remains negative in the Italian flat steel market, where prices have fallen further compared to ten days ago, dropping to levels that had not been recorded since October 2016.
Although most producers’ official hot rolled coil (HRC) list prices are at €440/mt ($480/mt) ex-works, this level is not workable, and so producers are granting discounts to close sales. As a result, HRC deals have been concluded in the range of €420-430 mt ($458-469/mt) ex-works, while cold rolled coil (CRC) and hot dip galvanized (HDG) coils deals have been transacted at €500-515/mt ($545-561/mt) ex-works. According to SteelOrbis, delivery times are normally under five weeks. Local demand remains weak, with service centers having generally reduced their purchases as they expect further price declines by the end of the year. Meanwhile, imports continues to exert negative pressure.
Import offers for HRC are in the range of €400-420/mt ($436-458/mt), while import CRC offers are at €480-490/mt ($523-534/mt), both on CIF Italy basis. While representing a disturbing factor, according to some operators the increase in imports could also be read in a positive key - the fact that there are imports suggests that whoever imports expects stable or higher domestic prices at the beginning of next year when the material that is ordered today arrives.
€1 = $1.09
