The Italian coil market continues to see a lack of activity this week, as buyers are taking a cautious stance. The trend is expected to persist into next week, Kallanish hears.
Hot rolled coil prices are reporting a downtrend in Europe, alongside a further decline in import offers, making Italian buyers hesitant to make purchases. A prominent coil processor anticipates prices will hit their lowest point next week, while another company projects a continued decline over the next two weeks.
A third steel processor reports a decline in downstream demand. Customers of service centres are similarly in a waiting mode as they see prices declining; therefore, there is almost no apparent demand.
Rerollers and service centres are maintaining adequate stock levels. Their purchasing activity is expected to remain on hold until at least the final week of June. The outlook appears unfavourable as a result of subdued consumption in downstream markets.
Several sources indicate coil prices in Europe are expected to rebound starting in October, due to the implementation of the Carbon Border Adjustment Mechanism (CBAM) effective from 1 January 2026. Many customers say that starting in September and October, they will no longer purchase material from Asia and will only be able to rely on Mediterranean suppliers who can provide prompt delivery before year-end.
A steelmaking source estimates the CBAM tax will stabilise at approximately €100/tonne ($114), whereas a service centre anticipates it will be closer to €60/t.
Italy is seeing various low-cost HRC import offers from Turkey, North Africa, and the Far East. Current offers originating from Turkey are noted to be in the range of €530-540/t cfr including duties. A major buyer is confident these suppliers might be open to negotiations and reduce their proposals this week.
Offers from India and North Africa are resurfacing in the range of €530-540/t cfr, while offers from Indonesia and Malaysia are positioned at €475-480/t cfr.
Two traders state there is a lack of buyer interest as expectations lean towards lower rates in the week to come, resulting in no immediate demand for coil. Producers in the EU are also beginning to decrease their prices to the level of €600/t delivered, while officially asking for €610-640/t delivered, sources suggest.
Natalia Capra France
