Producers of hot rolled coil in Italy and Europe are attempting to elevate prices to €600-610/tonne ($631.4-641.9) delivered. However, the market remains stagnant, with no transactions occurring at these prices, Kallanish hears.
Contract prices remain stable compared to mid-November, and demand subdued, resulting in sales of only limited quantities. There is a tug-of-war going on between service centres, who are willing to pay €550-560/t base delivered, and producers, who think they can obtain some price improvements before year-end. Transaction prices in Italy, along with other EU nations like Germany and France, are holding steady at €550-560/t base delivered.
Multiple buyers suggest there are no available import options. Material from the Far East is being quoted at €580/t cfr Italy. Turkish HRC is available at €580/t cfr duty paid. None of the service centres who spoke to Kallanish are contemplating purchases from the import market.
One buyer anticipates that European producers could achieve €570-580/t base delivered or ex-works depending on volumes. “Currently, there are no ongoing negotiations, and the subdued demand in downstream markets is expected to continue,” another source remarks.
Service centre customers who recognise there is no more space for sheet price reductions are meanwhile making some purchases. Italy’s service centres are raising their sheet values but finding it difficult to transmit the increases. Hot rolled sheet transaction prices are currently at €640-650/t delivered, with an additional €30/t for pickled sheet. Service centres are now increasing rates for hot rolled sheet to €670/t and €700/t for pickled material.
The outlook for downstream demand appears unfavourable. Countries like Austria and Germany are registering poor demand compared to Italy. One service centre indicates that demand is unlikely to rebound in the coming months, noting that all products are experiencing challenges.
Prices for cold rolled and hot-dipped galvanised coil continue to show stability, ranging from €640-650/t delivered. Sales of HDG to the automotive sector are experiencing a substantial decline in the fourth quarter, sources suggest.
Natalia Capra France
