Slack demand in southern European flat steel markets

Although flat steel demand in the southern European markets has failed to impress, flat steel prices in Italy are expected to rise in line with the weakening of the euro against the US dollar. SteelOrbis has learned from market sources that early this week Italian steelmaker Ilva has started to notify customers that it will increase its flat steel prices.
 
Accordingly, Ilva seeks to increase its hot rolled coil offers to €550-560/mt ($792-806/mt) ex-works for July production, up from €540/mt ($777/mt) ex-works for June production. However, market insiders think that transactions may be concluded below this price level.
 
SteelOrbis has learned that at Italian ports HRC prices stand in the range of €535-540/mt FOT ($770-777/mt). However, due to the weakened euro and also due to HRC bookings made when the euro was stronger against the US dollar, importers are not active in the market for the time being. In the meantime, since their inventories are not so high, southern European buyers are forecast to return to the market for bookings with shipment dates after the summer holiday.
 
Turkish HRC offers to southern Europe are standing at €570-580/mt ($820-835/mt) CFR. However, considering the current euro/dollar exchange rate, market operators state that it is difficult for now to give prices which will find acceptance in the European market.
 
On the other hand, it is reported that HRC demand in Spain is currently weak, while Spanish buyers' price idea stands at €530-535/mt ($763-770/mt)CFR.
 
In the Greek domestic market, HRC demand is slack, due to the ongoing economic crisis in the country. HRC offers to the Greek market given from Ukraine and some neighboring European producers are at €520-530/mt ($748-763/mt) CIF.
 
€1 = $1.439