The Italian and wider European coil market remains subdued, amid ongoing price weakness and sluggish purchasing activity. However, import prices appear to have bottomed out after a steep decline, Kallanish notes.
According to three major buyers, import purchasing has resumed, particularly from Asian suppliers. One buyer notes a preference for sourcing from closer Mediterranean origins such as Turkey and Algeria. Some service centres are also engaging in selective purchasing – both from EU and non-EU sources – when prices are deemed competitive.
Current import transactions range from €460-520/tonne ($532-602) cfr Italy, depending on origin and volume. Meanwhile, domestic producers continue to offer short lead times, with prices reported at €540-560/t base delivered.
A service centre reports that Turkish mills are no longer willing to lower their HRC prices. He anticipates import price stability in the coming days. Current Turkish offers range from €470/t cfr excluding duties to €510/t. A contract price of €500/t cfr would translate to approximately €550/t delivered to the warehouse, the service centre source believes.
Indonesian HRC is currently offered at €470/t cfr, while Indian suppliers are quoting higher prices, in the €510-520/t cfr range. According to a trader, import prices have likely bottomed out, with any fresh Asia-origin orders from now onwards expected to be impacted by Carbon Border Adjustment Mechanism (CBAM) costs. Two additional sources confirm that, apart from potential euro-dollar exchange rate shifts, further price reductions are unlikely.
On the cold rolled coil front, buyers are actively engaging in import transactions. Indian and Turkish CRC has been secured at around €600-610/t cfr Italy. Turkish suppliers are preferred due to shorter lead times and fast transit times, with navigation taking only two days.
Natalia Capra France
