Prices for Italian coil derivatives continue to decline, with sheet values down by €30–40/tonne ($34-46) compared to May, mirroring similar drops in welded tube prices, according to sources at distribution and service centres.
No upward price adjustments are currently anticipated, as the market remains in a broad downturn driven by falling coil prices both within Europe and for import. The continued decline is affecting the entire value chain, from raw materials to finished steel products. A major distributor voices concern over the persistent erosion of prices, noting the devaluation of inventories. Despite this, he emphasises the need for distributors to maintain sufficient stock levels and continue purchasing in small weekly volumes. Another distributor adds: “Our clients are aware that prices are falling and are holding off purchases, waiting to reach the bottom.”
Sales activity is expected to remain sluggish throughout the week, with little improvement projected until coil prices stabilise. Meanwhile, high processing costs and fierce competition are severely compressing margins at service centres, which some sources describe as virtually non-existent, Kallanish notes.
Hot rolled sheet prices have declined to €660-670/t delivered, while pickled material is now quoted at €690/t delivered, according to multiple sources. A major buyer of tubes and sheets reports a sharp decline in tube prices, citing a rise in commercial discounts from 37–38 points last month to 42–43 points currently. Larger buyers are reportedly securing even steeper discounts. According to a steel purchasing group, the market is nearing a bottom for hot rolled coil prices, with €530-550/t ex-works for European-origin material considered a potential floor. This level may consolidate next month, coinciding with an expected return of buying interest. Following the typical summer slowdown across EU markets, coil prices are forecast to rebound around September due to CBAM, which could lift both coil and derivative product prices.
Tube demand has weakened, reflecting the broader industrial downturn. However, sources note that demand was relatively healthy prior to the recent price correction in coils. Despite softer input costs, margins for re-rollers remain under pressure, squeezed by competitive pricing, weak end-user demand and expectations of heavy duties on their import purchases.
Looking ahead, July consumption for coil derivatives is expected to stay subdued, with distributors reporting medium-to-low stock levels, sufficient to meet the current reduced demand but limiting any near-term restocking activity.
Natalia Capra France
