The Italian flat steel market has remained very quiet in February and into March. According to different operators, activity is not at the high levels which are normally typical for the first quarter of the year, and the continuing weak situation has contributed to the decline of prices almost to the bottom levels recorded last November. Compared to the levels of three weeks ago, domestic producers' flat steel base prices have lost €10-15/mt, ($14-21/mt) decreasing to €420/mt ($584/mt) in the case of hot rolled coils (HRC), dropping to €490-500/mt ($671-695/mt) for cold rolled coils (CRC) and declining to €470-480/mt ($653-667/mt) in the case of hot dip galvanized (HDG) coils, all ex-works.
Apart from demand, which has not recorded any improvement though remaining steady at low levels, price reductions appear to result primarily from the negative news coming from abroad - in particular, the decline in the price of iron ore in China - and from the financial problems at every level of the supply chain in Italy and elsewhere. In addition to a situation of low stocks, sources report the propensity of Italian producers to replace local service centers in direct sales, adding to the confusion in the market. As for the coming period, some operators predict further price decreases and have little confidence in the future, while the most optimistic hope that the present moment constitutes the last stage of a long negative process.
€1 = $1.39