Italian HRC Steel prices remain flat so far in March: MEPS

ITALY March 26 2015 10:10 AMTweet
ROME (Scrap Register): Italian hot rolled coil basis prices are unchanged month-on-month so far in March, according to MEPS. Buyers report that third country imports are less aggressively priced. The weak euro has damaged their competitiveness.

Commodity plate selling figures have fallen over 2 percent. Re-rollers continue to benefit from low slab prices out of Russia and Ukraine.

Many service centres are living off their cold rolled coil stocks, for now, as they become ever more cautious about ordering forward. Some gaps in inventories did occur due to a lack of deliveries last month, when Ilva had legal problems. The dispute is now settled and there is plenty of material in the marketplace. Russian suppliers are offering at competitive prices.

Coated coil basis prices are stable. The auto sector is faring better now. The new Fiat models are very popular. However, no real improvement is envisaged in construction investment in the near term.

After holding selling values steady in February, low carbon wire rod suppliers have agreed a minor discount in March. A poorly performing construction sector continues to cause lacklustre demand for recoil. Although structural sections and beams sales are sluggish, customers agreed to pay the small advance implemented last month.

The rebar market is extremely poor, with low consumption due to a lack of investment in the building sector. Suppliers are unlikely to secure a rise.

There is less aggressive selling by Chinese suppliers because of the devaluation of the local currency. This has enabled domestic mills to roll over last month’s merchant bar price for March business. Nevertheless, there is still a lack of building activity.