Italian sections prices may increase again

Section prices may increase in Italy again before the Christmas holiday stoppages due to high production costs and scrap values hiking strongly this month.

The sector saw some restocking in November but order intake is now slowing. Transaction prices in Italy have already increased by some €30/tonne ($32) this month. Asking values for the first category of beams are now at €800/t delivered but, to cover the high costs of production, another round of increases is necessary. This is particularly in Italy where energy costs for hard-to-abate sectors are amongst the highest in Europe, Kallanish notes.

The November sales increase was due to very low stocks at distributors. There is no rush to purchase this month and the habit of purchasing low volumes but frequently seems to be back. Sales values for the first category of beams have reached €780-800/t delivered including size extras, sources suggest.

This month, Spanish long steel producer Celsa is said by its customers to be increasing prices in Europe for all long products by €30/t. It is also mulling a second increase driven by increasing scrap hikes in Europe. Celsa’s quotes in Central Europe for the first category of beams are being pushed up to €750/t ex-works on average (see Kallanish passim).

Natalia Capra France