There does not seem to be any end to the uptrend in the Italian flats market, with prices registering a further rise this month compared to the levels seen last month.
It has been the lack of offers rather than any reawakening of demand which has caused quotations in the Italian flats market to rise. It is reported that the July and August production of the main European and Italian steel producers has already been sold and that orders are now being filled for September and October production. Imports are also scarce; arrivals are strongly down on last year's levels and the prices offered are not very competitive.
Whereas the trend in quotations is headed upwards, the same cannot be said as regards demand, which has not yet taken off. Both apparent and real demand appear weak. Traders are buying just the bare minimum, and are complaining about the size of their margins. As for end-users, they have adopted a wait-and-see stance, discouraged by the high price levels.
For the coming period, it would seem that the wave of price rises has not yet come to an end. According to insiders, further increases are on the cards. Inventory levels in the distribution chain are medium to low and this will oblige traders to resume purchases in September-October. This demand for material could cause the sector to overheat further, resulting in additional increases in quotations.