Italian sections prices are increasing by €150/tonne ($163) on average amid restricted availability and high demand. The Russian-Ukrainian conflict has left Italian mills without ferroalloys, semi-finished products and pig iron, with energy costs and scrap prices skyrocketing, Kallanish hears.
In Italy, the main sections producer is implementing production halts a few days per week and allocating small tonnages per customer. All long steel producers are idling their mills on account of raw material shortages.
Paid prices for the first category of beams are now at €800-820/t base ex-works. Including €380-390/t average size extras, domestic beams contracts are hovering at €1,190-1,200/t ex-works, sources suggest. Prices increase by €20/t for each subsequence category. New beam quotes are now hovering at €910/t base ex-works. Sales executives are not allowed to sell more than one truck load per contract.
Meanwhile, merchant bar producers are also idling their mills and continuing rolling with the billet they have left in stock. Paid prices until last Friday were at €590-620/t base ex-works. Including €420/t average size extras, domestic contracts are at €1,010-1,040/t ex-works, sources suggest. New asking values for limited material allocations are said to be at around €700-710/t base ex-works, Kallanish notes.
Natalia Capra France