Prices are falling and apparent demand is stagnant - this is the none-too-idyllic situation in the market for stainless steel flat products in Italy.
In recent weeks, there has been a strong drop in demand - both apparent and real - for stainless steel flat products in Italy. Apparent demand has come to a halt for several reasons: in the first place, due to distributors' high levels of stock (the consequence of the strong arrivals from abroad in the past couple of months) and, in the second place, due to the fall in nickel quotations at the London Metal Exchange (boosting expectations of corrections in alloy extras for September and October) which has discouraged traders from making purchases at the present time. Furthermore, real demand, which has been hit in recent months by the high price levels, appears to be in difficulty and end-users are now only buying what is strictly necessary for their short-term needs. Looking at the situation from the point of view of production, the European and Asian steel mills are registering low levels of orders.
In order to see a pickup in the sector, it will first be necessary to wait for inventory levels to come down, and this does not appear likely to happen before the end of September.