Demand improves for Italian HDG

Sellers are reporting some demand improvement for Italian hot-dipped galvanised coil but quiet activity for cold rolled coil which is competing with lower import offers.

While domestic producers are managing to sell at relatively good prices in Eastern Europe and France, other countries such as Germany and Spain are bidding at unsustainably low values for HDG, sources tell Kallanish.

Domestic transaction prices are flat compared to the beginning of July as the increases implemented for coil this month did not stick. Sellers are nevertheless not complaining about sales this month and the entire value chain seems to be enjoying the current price stability after the steep fluctuations of the past. The market will start going quiet from next week, in preparation for the August stoppages.

Transactions indicate HDG levels are at €760-780/tonne ($852-874) base ex-works depending on volumes and CRC at some €10-20/t less.

Some mild restocking is expected for both products in September for year-end delivery. Today’s main issue for HDG and CRC producers is that certain EU hot rolled coil safeguard quotas are being quickly exhausted, meaning importers will have to wait until the next quota term before they can clear material through customs.

Demand for HDG is stable and the domestic market seen as “positive”, but low volumes are reported for CRC. Buyers prefer imported CRC at €680-690/t cfr Italy and domestic volumes are thin.

HRC prices, meanwhile, also remain stable, with demand flimsy, at €650-660/t base ex-works, sources suggest.

Natalia Capra France