Italian coil derivative price increases are facing hurdles. Welded tube values are experiencing a gradual increase, whereas the forecast for sheet prices remains ambiguous, Kallanish notes.
Over the previous few days, welded tube discounts have finally dropped, falling from 48 points last month to 46 points. There appears to be a divergence in pricing strategies within the market. The larger re-rollers, who offer a diverse array of products, are backing the price increases. By contrast, smaller tube manufacturers, with a more limited product offering, are compelled to make concessions, continuing to sell at discounts of 47 and 48.
The larger re-rollers anticipate that price increases will be consolidated in the upcoming weeks, with discounts expected to dip below the 45-point threshold in the near term. Two distributors of welded tube have confirmed there is demand, although it has decreased compared to the first quarter of 2024.
In the meantime, sheet prices appear to be declining. Sellers are losing orders at quotes of €710/t delivered for hot rolled sheet, as more competitive pricing in the range of €680-690/t appears to be accessible. A source indicates that at this price, service centres continue to operate at a loss.
A distributor of flat and long products reports sluggish performance so far in 2025. Q1 volumes declined approximately 20% on-year, with a more pronounced decrease in turnover. Another distributor also reports a challenging first quarter, which follows an already subdued performance in Q4 2024.
“My clients are currently experiencing a 50% reduction in workload compared to last year, and their outlook for the next quarter remains pessimistic. The introduction of import quotas [caps] has further complicated an already fragile market. Companies are uncertain about making purchases from imports due to the lack of clarity regarding the ability to clear materials through customs. Some longs mills have attempted to raise prices, but the current market conditions make this effort unfeasible,” the source comments.
He adds that there are days when there is a complete lack of incoming calls. A significant number of distributors are reducing their margins in order to facilitate sales.
Marcegaglia Carbon Steel’s tube division has released a new pricing list reflecting increased values for carbon steel welded tubes derived from black, pickled, polished, and galvanised strips, effective this week.
“The introduction of the price lists for welded tubes takes into account the evolution of raw material prices, partly accelerated by increasingly stringent protectionist measures and the rise in costs that, in recent months, have reshaped the overall production cost structure of welded tubes,” a company note says.
Natalia Capra France
