Coil prices in Italy are seeing a gradual increase, primarily driven by the low volume of import contracts.
According to sources, hot rolled coil values have hit €590-600/tonne ($615-625/t) base delivered. Both buyers and sellers anticipate transactions will reach €620/t base delivered in February, Kallanish hears.
Hot-dipped galvanised coil is at approximately €670-680/t base ex-works on average. Producers are requesting prices in the range of €700-720/t delivered for the commodity grade.
Current lead times are for March and April; however, some quotes are still indicating the end of February.
Cold rolled coil existing contracts are trailing behind at €650-660/t base delivered. Competitive CRC import offers are exerting downward pressure on prices, reportedly in the range of €640-650/t cfr Italy.
One producer tells Kallanish he is asking for €730/t base delivered for HDG and €720/t for CRC. He says he is achieving these levels but only for small orders.
Both buyers and sellers concur that demand has been limited in January, and consumption continues to underperform as volumes are absent. While raising current prices may contribute to revenue, it is insufficient to achieve profitability.
Compared to pre-Covid, the €150/t spread between HRC and HDG is no longer sufficient. Given elevated energy prices and various high production costs, including HRC safeguard duties that steel importing processors have incurred in recent months, HDG levels should be in the range of €770-780/t delivered. However, the market is currently not approaching this benchmark.
“We are making small steps forward with prices. Increases are slow to happen but compared to the figures we had in December, we have achieved much better values considering that demand is at its lowest levels,” a producer comments.
Current demand from eastern Europe is the most robust within the EU; however, enquiries are also emerging from other locations, including Spain, France, and notably Germany, following a long absence, two sellers agree.
Italian demand appears to be subdued, as buyers acquired significant volumes both in the domestic market and through imports during November.
Natalia Capra France
