Italian coil demand surges

Italian hot rolled coil demand is increasing this week, as predicted. Asking values are hiking by some €20/tonne ($20.5) on average, supported by less competitive import offers, Kallanish hears.

Italian producers are now asking for €620-650/t base ex-works. Contracts, which until last week started at €570/t base ex-works, are seen rising to an average level of €620/t base ex-works this week. Multiple service centres and re-rollers say they are ready to book material this week for first-quarter delivery.

Meanwhile, cold rolled and hot-dipped galvanised coil prices continue to be under pressure in Italy and wider Europe, mostly due to the downturn in the home appliance and automotive sectors.

Asian offers and contract prices in Italy are particularly competitive, with service centres buying Asian CRC at €620-630/t cfr. Local CRC contracts start at €690-700/t base ex-works for the low point of the range and go up to €730-740/t, but sales are only for low volumes.

Domestic HDG values are at €730-750/t base ex-works on average. Demand for this product continues to stagnate but sellers are not ruling out some price recovery, in line with HRC.

Natalia Capra France