Italian longs values flatten on low sales volumes

April is proving to be a slow month for Italian long steel activity but prices have remained stable for most products amid slow demand. Sellers say their first-quarter results were negative compared to the same period last year, but in line with 2019, the year before the Covid pandemic, Kallanish notes.

Particularly low volumes have been reported in March and April for merchant bar. The price gap between sales of large and small volumes is widening. Small volumes are still fetching €500-520/tonne ($545-567) base delivered, while larger volumes, albeit rather rare, are being sold at €450-470/t base ex-works. Including size extras, domestic values are hovering at €870-920/t ex-works. Competition from Spanish and Eastern European material remains significant.

Sellers are reporting good sales of beams at flat prices. Distributors are selling the first category of sections at €970-980/t ex-works including size extras.

One seller talks about a “frightening demand collapse for merchant bar compared to last year”. However, after the Easter holiday, activity has become slightly more dynamic. Since Tuesday, the distribution sector is suddenly back to purchasing and asking for material after the quiet over Easter. Stocks are being kept so low that a slight increase in demand downstream will cause a shortage in the distribution segment.

The last week of April is forecast to be slow in Italy. Multiple distributors and end-users will shut down on 22 April only to resume activity on 2 May, after the 25 April and 1 May bank holidays.

Natalia Capra France