Italian coil prices have remained stable since the start of the month; however, there is a notable lack of purchasing activity, Kallanish hears from buyers and sellers.
Last week, the Easter and 25 April holidays, along with the restrictions on truck circulation, contributed to a deceleration in activity and negatively impacted sales. This week is anticipated to be relatively subdued, with many expected to take extended leave for the Labour Day holiday.
However, the current market slowdown can be attributed less to the holiday season and more to the anticipation surrounding potential price fluctuations at the upcoming trade show in Milan next week.
Several sources prepared to purchase small quantities state they are waiting for the trade fair, where several Asian traders are anticipated to attend and prices will be more clearly determined.
Several industry insiders expect prices will drop in May due to the impending sharp fall in scrap values, as well as in coil import prices from various regions, including Asia, Turkey and Saudi Arabia.
Recent hot rolled coil import offers from Indonesia and Malaysia are reported in the range of $570-580/tonne cfr, which translates to approximately €502-510/t.
Quotes from Turkey are currently being reported at €570-580/t cfr duty paid and €550-560/t cfr from Saudi Arabia.
Transactions for domestic HRC are reported to be stable at around €630/t delivered.
A mill source reports buyers are adopting a cautious approach; however, material availability remains limited in Europe and northern European lead times are extending.
Natalia Capra France
