Italian Market: process of de-stocking at SSC is continuing

Italian hot rolled coil prices are stagnating and are back to the low levels seen in the second quarter. Domestic prices have not moved on-week as activity is considered sluggish, market sources tell Kallanish.

Demand continues to be patchy also for cold rolled coil and hot-dipped galvanized material, with activity in end-use sectors continuing to slow this month. At present HRC is at €440-450/t ($494-505) base ex-works. HDG is at €520/t base ex-works on average and €10/t less for CRC, market participants suggest.

The process of de-stocking at service centres is continuing this month and due to uncertainty both service centres and tube makers are purchasing lower volumes, mostly half of the tonnage they usually book.

July is forecast to remain uneventful and to end with little or no price movement. Despite the very low demand for CRC and HDG, however, values are at least not seen decreasing before the August break in most European countries.