Italian demand recovery sustains coil prices

Italian coil prices are mostly stable compared to last week, fluctuating at around €750/tonne ($766) base ex-works depending on client and volume. This is happening despite some Italian coil producers pushing up their values by €40/t, mainly because of higher production costs.

Italian coil prices are mostly stable compared to last week, fluctuating at around €750/tonne ($766) base ex-works depending on client and volume. This is happening despite some Italian coil producers pushing up their values by €40/t, mainly because of higher production costs.Service centres interviewed by Kallanish have registered a significant increase in demand for certain products and stable prices of coil derivatives throughout the country. While the automotive sector remains stuck and is showing little improvement, encouraging signs of demand recovery are reported from several industrial sectors.

Some restocking and apparent demand is also reported, and local service centres will shut down for the August holiday break next week with decidedly improved order books. End-users, however, are refusing any price increases, and sources believe demand will continue to be sustained only if prices remain below €800/t.

Hot rolled coil import values from Asia remain competitive at about €700-730/t cfr, but the long lead times, sometimes stretching into November, are discouraging Italian buyers from committing.

Italian HRC makers are now asking for €780-800/t base ex-works for new orders and quoting for August delivery. Domestic contracts hover at €720-750/t base ex-works. Sources forecast values to stabilise at the level of €750/t until the end of the month.

Meanwhile, cold rolled and hot-dipped galvanised coil are also stable at €880/t base ex-works for the former and €900/t base ex-works the latter. There are no competitive import offers for CRC, which is sustaining Italian price stability and demand for the product. Some import offers at €820-840/t cfr are reported for HDG from Asia.

Natalia Capra France