Stagnation continues for Italian CRC, HDG

Stagnation continues in the Italian cold rolled and hot-dipped galvanised coil markets. Some additional demand was however reported over the past ten days. Producers have agreed more contracts, particularly for export sales to neighbouring European markets such as France and Germany. These regions are showing more dynamism compared to Italy.

Overall, sellers see a continued decline in consumption for both products, with domestic sales at low tonnages. Demand for CRC is particularly weak, also dragged down by lower import offers from Asian countries, which remain at €770-780/tonne ($748-758) cfr, Kallanish hears. Some Italian steelmakers are said to be producing less CRC due to the demand downturn.

At present, HDG is hovering at €840-880/t base ex-works, while CRC contracts start at €800/t base ex-works and go up to €880/t. Italian, French and German HDG contract prices are said to be mostly in line with this, at an average of €840/t base ex-works.

Some service centres say their orders are falling by 40% compared to last year. They are selling and buying mostly back-to-back, and reporting a high level of coil stocks in their yards.

Italian producers are asking for €860-880/t base ex-works for HDG and CRC for November delivery, sources suggest.

Natalia Capra France