Some demand resumes for Italian tube and sheet

Some demand is finally returning to the Italian coil derivatives market, particularly for sheet and welded tube, Kallanish is told by service centres, distribution sources and re-rollers.

After a long period of slow sales, end-users are beginning to restock. They are buying domestic sheet from local service centres, but also cheaper imported material, particularly from China and other Asian countries.

With possible increases in tube prices, demand is also resuming. Re-rollers are now reducing output while prices seem to have reached rock bottom. Tube discounts are now stable on 30 points on average and should start falling in contracts this week, sources say. Uncertainty and fear continue to blight buyers, although end-users are said to have orders.

Meanwhile, Italian hot rolled coil producers are also seeking increases, driven by high production costs (see separate article). Some are indicating HRC values at €800/tonne ($812) base ex-works, reflecting a €50/t increase on contracts the prior week. Italian scrap is also increasing and going back to levels of €360-380/t delivered for the expensive grades such as new arisings.

Natalia Capra France