Buyers see the upward trend in coil prices in Italy and Europe continuing through the second quarter. Regional mills’ hot rolled coil prices have risen almost €200/tonne ($217) compared to the beginning of this year, coupled with reduced allocations and long lead times.
Deliveries are extending to June, one source comments. Coil import allocations and supply pool are also substantially reduced. The limited volumes being offered remain at high prices. On average, import values have increased by €250/t compared to the low points seen at the end of last year. Import offer availability is not forecast to grow, while prices are unlikely to reduce until at least the end of Q3.
Coil service centres have reported weak demand in March, following strong demand between the turn of the year and mid-February. This makes it difficult for service centres to pass on mills’ coil price hikes downstream, with a consequent impact on their profitability.
Service centre shipments are reported to be in line with or slightly improving in the first three months of the year compared to the same period in 2022, but second-quarter deliveries will fall following lower orders in March, two service centres tell Kallanish. A source says: “It is paramount to pass on the coil price increases downstream and throughout the value chain, as a drive for the distribution sector to also increase its prices.”
Meanwhile, steelmakers’ order books are well-filled until July. Supply is being kept tight by lower output at Acciaierie d’Italia and disruptions at Tata Steel Netherlands and ArcelorMittal in Spain, together with strikes by French railway operator SNCF.
Italian crude steel output fell 7.3% year-on-year in February to 1.8 million tonnes. According to data issued by local steelmakers association Federacciai, in the first two months of the year, production declined by 10.8% on-year to 3.4mt. The EU27 saw crude steel output fall 13% in February to 10.51mt.
Natalia Capra France
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