Price increases for Italian coil derivatives are being pushed through very slowly. Welded tube values are showing an upward trend, and there is a slight improvement in sentiment among re-rollers. However, the outlook from service centres continues to be negative, with sheet prices experiencing another decline.
The market is seeing a degree of uncertainty characterised by subdued demand; however, both positive and negative indicators are present. A re-roller says the protectionist policies implemented by US President Donald Trump have merely expedited a trend that began years ago. The ongoing regionalisation of markets has the potential to enhance business opportunities for European companies. Many re-rollers within the EU primarily serve the European market, with only a minimal portion of their production being exported.
There has been a noticeable uptick in interest from German buyers seeking to establish procurement agreements, as non-EU imports of welded tube are facing growing challenges. The source, along with a coil producer, tell Kallanish they are observing an increase in confidence among large German buyers, indicating a shift in sentiment that had stagnated for months.
Germany’s new infrastructure fund is poised to enhance steel demand significantly. The modest boost in confidence over flat steel price increases may result in a return to profitability across the value chain.
Multiple sources see the gradual increase in coil prices continuing, attributed to reduced product availability in Europe and a decline in imports. The re-roller indicates the implementation of safeguard and anti-dumping measures has resulted in the removal of more than 2 million tonnes of imported material within the European market.
Hot rolled coil prices in Europe are at €630-650/tonne ($674-700) delivered, with the lower end of the range accessible in Italy. Some mills are asking for €670/t base delivered and considering further increases (see separate story). The two sources believe HRC values, at least in Italy, will be lifted towards €700/t delivered by the time of the Made in Steel event in Milan in May.
Italian welded tube discounts are being pushed down and in some cases are beginning to fall from the level of 48 points, towards 46 points. Smaller tube makers, however, with a more limited product offering, are compelled to make concessions, continuing to sell at discounts of 47.
Marcegaglia has restructured its price list and changed its dynamics starting from 24 March. The new list bears the structure of the list in place in 2021. According to the old list, the company was pushing down discounts to 44-45 points. With the new list, discounts are brought down to the level of 33-44, reflecting a price recovery of €30-40/t on average as some grades will increase more than others.
The new list considers the trends of all raw materials used in the production of each tube grade, alongside the currently high production costs, a company representative explains.
Natalia Capra France
