The recent downward trend in Italian welded tube prices is showing signs of reversal, aligning with a broader wave of price increases across coils, derivatives, and other flat steel products.
According to a re-roller who spoke to Kallanish, the market is experiencing a rise in apparent demand, largely driven by growing uncertainty surrounding buyers’ ability to secure material from the import market. This hesitancy stems from evolving trade barriers, including the Carbon Border Adjustment Mechanism (CBAM) and impending safeguard replacement measures. These are prompting many buyers to shift back towards domestic and EU-based sourcing.
As a result, welded tube prices are beginning to tick up and may firm further in the coming weeks as supply tightens and purchasing activity resumes. With demand showing early signs of recovery and import uncertainty, Italian re-rollers are actively reducing welded tube discounts, which had reached 42-43 points in July.
Before the upcoming August production stoppages, they aim to bring discounts down to 40 points. This move reflects an effort to restore margin levels amid rising input costs and strengthening coil prices.
Another welded tube seller notes the urgent need to reach “a sustainable discount level that matches the input cost of increasing hot rolled coils”, driven by market tightening and regulatory pressures such as CBAM.
Last week ArcelorMittal and other EU producers including in Italy increased hot and cold rolled, as well as hot-dipped galvanised coil prices by €20-30/tonne ($23-34) across Europe, effective for new contracts covering the remaining third-quarter delivery slots and October shipments.
The revised base price for HRC is now set at €590/t delivered, using the German market as a reference point for northern Europe. In southern Europe, asking prices are at €580/t base delivered.
Natalia Capra France
