Italian hot rolled coil producers are still not quoting this week as the market grapples with continued short supply. Some re-rollers are consequently understood being forced to reduce production this month. Domestic as well as imported prices for coil and coil derivatives keep skyrocketing, sources tell Kallanish.
The latest contracts for HRC are hovering at €880-900/tonne ($1,046-1,070) base ex-works. Some traders sold at port last week at €860/t. Today, this price is impossible to find for service centre material. HRC bought by re-rollers is slightly lower quality and therefore cheaper.
ArcelorMittal is meanwhile said to be increasing its prices again this week. HRC now starts for southern Europe at €920/t, while cold rolled coil is priced at €1,040/t base ex-works. The company is quoting €1,075/t for hot-dipped galvanised coil, sources say.
While demand significantly weakened last week as a result of the previous price increases implemented by ArcelorMittal, it is now resuming. However, the limited material availability is hampering producers’ ability to respond to requests.
Only one domestic HRC producer is seen quoting for June-July casting, while other producers are already offering for August-September. When producers resume quoting again next week, asking prices for domestic HRC are seen reaching €950/t base ex-works, Kallanish hears.
Natalia Capra France
