Italian coil prices are edging higher although orders remain thin as the market enters its August shutdown period, with the entire steel sector on maintenance stoppage, with buyers focused on administrative work this week ahead of the holiday period.
Sources tell Kallanish they expect coil prices to continue rising in September and October, when buyers in Italy and Spain will have worked through their stocks and will need to source material in Europe.
Only large re-rollers remain active on the import market, while service centres are staying away, having built up large tonnages ahead of the introduction of the new tariff rate quotas (TRQ). Traders say import activity is completely stalled. Buyers are enquiring about material for the next import round in the first quarter of 2027, but quotes and contracts have yet to be finalised.
ArcelorMittal has increased prices for southern Europe to €770/tonne ($876.9/t) base delivered for hot rolled coil. In Italy, mill sources report an increase in orders in the past days despite the seasonal slowdown. HRC prices in southern Europe stand now at €710-730/t delivered with very rare peaks at €760/t base delivered, but for low volumes. Cold rolled coils and hot dipped galvanized prices are also moving up to €800-830/t base delivered.
Meanwhile, Italian consumption of coil derivative products such as sheets and tubes has come to a standstill, though sheet prices have risen sharply since early June. Black hot rolled sheets are now trading at €800-820/t, with service centres pushing prices towards €850/t. Sources are confident that level could be reached in October.
The sheet market has moved since the implementation of the new trade measures, though a rebound in consumption has yet to materialise.
Several service centres report volume gains in the first seven months of the year, though margins remain under pressure. Mills will benefit from rising prices, but service centres are expected to remain in a difficult position, caught between upstream price increases and weak downstream consumption, with clients reluctant to commit to volumes. Independent service centres are also losing the opportunity to manage costs through import speculation under the new trade framework.
