In the Italian domestic market, flat steel prices may finally have achieved a certain degree of stability. After a downtrend which lasted two months, with domestic prices reaching extremely low levels, local market operators now perceive a slight improvement in terms of activities. Over the past 10 days, in fact, buyers, who previously had been reluctant to purchase because of the gradual weakening of prices, have started to replenish their stocks, driven in part by the predicted rise in raw material prices at the end of the summer break. However, there is no improvement in the economic situation, nor has there been a significant recovery in the downstream market, which is still weak. At the same time, no turnaround is expected in consumption levels in the European market in the short term, while there is no particularly positive news in the international market either. In this overall context, Italian operators hope that the small positive signs recorded in the last few days last as long as possible. Because of financial needs, stocks remain very low everywhere, and local operators continue to struggle with a lack of liquidity, difficulties in collecting payments and strong competition.
SteelOrbis has learned that Italian producers' domestic flat steel base prices are at €410-420/mt ($533-546/mt) for hot rolled coils (HRC), €490-500/mt ($637-650/mt) for cold rolled coils (CRC) and €460-470/mt ($598-611/mt)for hot dip galvanized (HDG) coils, with HDG base prices at lower levels for the smallest sizes, all ex-works.