Italian tube makers at the Tube and Wire trade show in Düsseldorf are considering price increases of around €50/tonne ($58.93/t), with changes depending on re-roller, as they look to align tube values to coil increases, sources tell Kallanish.
One tube maker confirms they have suspended sales and will take a few days to come up with new quotes. No formal announcements have been made as companies use the trade show to gauge market sentiment, though several are expected to potentially announce these before the event closes.
While prices of coils continue to steadily tick up, with further increases expected from the new safeguards, Italian tube prices have been stagnating over the past month.
The sector is dealing with weak demand with a particularly quiet market in March. Tube discount levels remain between 40-42 points. Re-rollers are considering decreasing them by three points.
Downstream clients are bracing for price increases in the coming months but report concern over weak demand and their ability to remain profitable with the current elevated costs.
As current coil stock levels deplete in the coming weeks, some sources anticipate that hot rolled coil could reach €900/t after the summer.
Payment defaults and delays are beginning to emerge downstream, adding to the current complexity. The main concern among buyers at the trade show appears to be the disconnect between the reality of the current market consumption and continued upstream price increases.
One large buyer of sheets and tubes tells Kallanish that the manufacturing sector is now starting to feel the full weight of high prices driven by protectionism and eroding competitiveness, caught between rising upstream prices and a market unable to absorb further increases.
An Italian purchasing group reports high stocks and weak downstream demand for coil derivatives, with most steel processors recording negative performance and no visibility on tube orders.
