Operators surveyed by SteelOrbis have stated that they are rather disappointed with the slack demand recorded in the Italian flat steel market after the return from the summer holidays. According to market sources, there have not been any signs of economic recovery so far and the current situation in terms of demand in the flat steel market appears very static.
In terms of prices, after the reductions recorded in the second half of July, the objective of Italian flat steel producers has been to regain ground in the month of September. Specifically, their intention is to increase prices by €20-30/mt ($26-39/mt) compared to late July prices. According to Italian producers and distributors, the previous prices are no longer sustainable and even the increases that they are trying to achieve at present would not allow a full recovery of profitability. In the presence of a more lively market, the new prices could gain acceptance more easily. Unfortunately, however, the prospects for the market are not positive in the medium term.
At the end of July, domestic producers' hot rolled coil (HRC) prices were at €400-405/mt ($516-522/mt) ex-works, while local producers are now asking for €425-430/mt ($548-555/mt) ex-works. At the same time, the producers' cold rolled coil (CRC) prices have increased from €475-480/mt ($613-619/mt) in late July to the current level of €500/mt ($645/mt) ex-works, while hot dip galvanized (HDG) prices, which in late July were in the range of €445-460/mt ($574-590/mt) , are now being offered at €470-475/mt ($606-613/mt) ex-works.
As mentioned before, local demand is weak, while other critical factors include the lack of liquidity and delayed payments. These factors also continue to induce both service centers and producers to maintain supplies at very low levels.