Stagnation deepens in Italian longs market
Merchant bar sales are being concluded every week but only for very low volumes. Producers however prefer to lose orders rather than accept lower values. Italian domestic merchant bar prices are hovering at €300-330/tonne ($328-360) base delivered. Including size extras, prices are at €700-750/t, sources suggest. Sources say that a workable level that may move some volumes is about €280-290/t delivered.
Wire rod prices are declining to €640-650/t delivered (see separate article) and orders for downstream products are also weak, while some more demand is reported for sections. The beams market is however also stuck, with sales back-to-back and volumes low. Prices nevertheless remain mostly stable.
The first category of beams stands at €780-790/t ex-works but cheaper material offered from other EU countries is expected to drag down domestic prices. Both producers and distributors are dealing with tight margins and no improvement is seen this month in volumes or consumption.
The longs market outlook for March and the second quarter remains negative, with the looming possibility of a strong price decrease.
Natalia Capra France
Italian plate prices decline amid slow demand, imports
Italian plate prices are declining in some contracts amid a sluggish market. Large buyers continue to be absent and sales are being implemented only for small tonnages, sources tell Kallanish.
Distributors say they are all waiting. There is low-priced imported material being offered and sold at Italian ports at the equivalent of €690-700/tonne ($765) cfr for the high S355 grade. Since mid-February, demand has become particularly quiet.
Italian mills are officially at €770-780/t for S275 grade base delivered this month. However, transactions are occurring at €730-740/t, while S355 is being transacted at €30-40/t higher, sources suggest. Some mills are keeping the €750-760/t level for S275. Margins are becoming tight, considering high processing costs and slab prices which remain at approximately $650/t cfr Italy.
Distribution sources agree “the phones are not ringing”. Those who are well stocked with different grades of plate are reporting to be selling small volumes.
Mills have however filled their order books until April and May, and can afford to sell less and try to hold on to higher prices in this quiet market.
Natalia Capra France