Italian coil buyers see momentum holding until summer

The ongoing positive momentum for coil prices across Europe is seen continuing at least until the summer, according to major Italian coil processors.

During a webinar organised by Siderweb, Giovanni Carpino, managing director of coil re-roller Liberty Magona, said all indicators point towards price increases or stabilisation until September.

Coil suppliers are already quoting for June output and demand is very strong at the moment, he added at the event attended by Kallanish.

After the summer break, though, some uncertainty could impact the market, together with the slowdown in demand recovery expected by Eurofer, he added. The decision on safeguard measures beyond June will also have an impact on the trend.

“Currently, HDG products are benefitting from the best demand within the coils market,” Carpino explained. Liberty Magona supplies hot-dip galvanized coil and pre-painted coil.

Similarly, Eufrasio Anghileri, head of distributor and service centre Eusider, believes the current positive momentum will continue until June. He added that stocks at distributors and service centres are low and that a change in direction for prices is not expected at least until stocks are well replenished. This is something that is not happening now due to strong demand from customers.

According to the latest release from distributors’ association Eurometal, EU service centre stock levels in December were on average at 91 days’ worth of sales, 23 days lower than in December 2019.

Emanuele Norsa Italy