The attitude of buyers remains cautious in April, but the belief that the price floor has been reached is spreading throughout the Italian service centre sector, says Italian steel trade association Assofermet in its latest market note obtained by Kallanish.
However, despite orders from end-users remaining substantially lower compared to the same period last year, the association is registering growing interest from customers buying according to their programmes for the coming months.
“There are high expectations for the Tube & Wire trade fair … the outcome of which could generate a change in market direction,” the note states. There was a further weakening of coil demand from end-users and service centres in March, with a consequent price decline, it adds. “The general lack of propensity to purchase … has led [Italian] steel mills to review selling prices in an attempt to react to the offers from Asian steel mills,” the association notes.
Assofermet notes that the EU’s “other country” safeguard quota for hot rolled coil has been exhausted in the second quarter again within days. In 2023, imports of this product category increased substantially from Asia. The huge volumes not cleared through EU Customs are now added to the volumes that will be cleared during this quarter and remain stored in the port terminals. This entails “heavy economic repercussions on the importer and on the organisation of port logistics,” the association concludes.
Natalia Capra France