Coil derivative prices in Italy are rising sharply with buyers resuming purchases of tubes and sheet products amid higher coil prices linked to safeguard measures and the impact of CBAM, re-rollers and service centres tell Kallanish.
Some renewed buying interest is currently emerging for sheet and strip, as customers procure material in anticipation of further price increases. One source notes that higher price levels are welcomed, as they increase the value of existing inventories, but notes that it does not reflect a genuine improvement in real demand.
According to market participants, downstream consumption remains unchanged compared with last year’s levels.
The market has started the year slowly, with January remaining subdued following some restocking activity in December. However, hot rolled sheet contract prices have moved higher, rising from around €720/tonne ($852.79/t) base delivered at the start of January to €750–760/t this week, with higher grades reported at €780–790/t delivered.
These increases reflect price hikes implemented last week by service centres.
“Below these levels, service centres are unwilling to accept orders,” one source comments.
Several service centres warn that further price escalation could follow in the coming weeks, citing sharp increases in coil prices linked to CBAM and other protectionist costs.
The Italian market remains highly competitive due to its fragmented structure, but rising costs are reducing steel processors’ willingness to grant price concessions. Several market participants note that sheet prices continue to lag recent coil increases and will need to rise further in February.
Meanwhile, tube prices are also moving higher, with re-rollers this week narrowing discounts to around 40 points. A shortage of certain grades is emerging, driven by slow customs clearance of imported coils and production cuts.
One purchasing group says that while January started slowly, volumes for sheet and tube products were satisfactory overall. The group expects prices to continue rising in the coming weeks.
