According to market sources, base prices of hot rolled coil (HRC) in the Italian domestic market are now mostly at €460-470/mt ($515-526/mt) ex-works, down €5/mt from the upper end as compared to last Friday, March 29. Market sentiment is still negative due to low demand and short lead times. The market sources have underlined that the weakening of the market is atypical for two reasons: the presence of EU safeguard measures, and the fact that this period of the year is traditionally a positive one due to the rise of construction activities. However, both the Italian and the European flat steel markets are still influenced by the slowdown of the EU economy, and in particular by the low demand coming from the automotive industry. The latter has been indicated by a decrease in new car registrations in the first few months of 2019, while carmakers in the region are worried about the possibility of US tariffs on EU cars. Local sources hope that steel demand will recover in the coming period thanks to an easing of economic uncertainties.
€1 = $1.12