Italian coil transaction prices are stable this week. Rises of some €10/tonne ($12.3/t) compared to the last week of February are expected however and this is starting to be announced by suppliers, Kallanish learns from market sources.

"A major supplier in Italy has already indicated that offers are moving up €10-20/t, but for the moment we can only confirm that transaction levels have remained stable," a source at a service centre comments. 

Import offers in the country for HRC are now standing at above €560/t cfr Italy, indicating that buyers have no other options for their purchase. High tonnages buyers are ordering European material as a result, while the level of orders from service centres in Italy is stagnating. 

“Service centres are struggling to pass on the increases to their customers and are resisting any price hike on HRCs. Most are putting off their purchases and when obliged to buy they are tending to refuse the increase. This is causing confusion regarding any short-term price evolution in the country, and a very slow market,” an informed source says.

In addition to the above, the recent results of the Italian general elections could well further delay completion of the sale of Ilva to ArcelorMittal, adding to the existing supply uncertainty in the market (see related story).

Domestic HRC prices are at €560/t base ex-works with some transactions still at €550/t base ex-works. Meanwhile cold rolled coil and hot dipped galvanised transaction prices are stable in the range €630-650/t base ex-works, sources suggest.