Italian coil market remains sluggish

The market remains quiet and uncertain this week for Italian coil, with expectations on the buyside of price decreases, and sales poor, particularly for hot and cold rolled coil.

Producers are mulling increases for hot-dipped galvanised coil and CRC, as they have since the turn of the year been particularly affected by steep electricity and gas prices hikes. However, the market is stalling and conditions are too uncertain for a solid price hike, market sources tell Kallanish.

Interesting import offers are reported for CRC, but HDG imports are now closed for the first quarter due to exhausted safeguard quotas. European importers of HDG exhausted most safeguard tariff-free quotas for HDG in the 4a sub-group, but not for automotive (see Kallanish 13 January).

Domestic prices for CRC and HDG remain stable compared to the beginning of the month despite the weak activity. Buyers are waiting for better visibility on international prices and are not committing to high volumes.

HDG prices in the latest contracts are in the €1,050-1,100/tonne ($1,190-1,247) base ex-works range, while CRC, less demanded at present, is reported at €1,030-1,100/t base ex-works. ArcelorMittal Europe recently implemented a €30/t hike on these two products, pushing prices to €1,150/t base ex-works in Italy (see Kallanish 11 January).

Natalia Capra France