Italian HRC producers seek increases983 Views
Some Italian coil producers are seeking increases, pushing up quotes by €40-50/tonne ($40.6-50.7), mainly because of higher production costs.
The price of energy is anticipated to surge in September, with Italian and German steelmakers, particularly, bracing for gas price-related headwinds in the last quarter.
Hot rolled coil demand remains stagnant not only in Italy but also in other European countries, with order intake consistently subdued and for low tonnages, market participants tell Kallanish.
Senior market sources confirm that, in the Italian market, ArcelorMittal is trying to raise offers by €40/t, with similar moves expected in Spain. Other steelmakers are now asking for €800/t base ex-works for new orders and preparing to idle their mills to reduce the substantial overcapacity.
Acciaierie d’Italia, the joint venture between ArcelorMittal and state-owned Invitalia, has shut down blast furnace no.2 and plans to restart it at the end of August. Arvedi will also idle production from the week ending 29 July, sources observe, although the company has refused to comment.
Italian HRC contracts are increasing slightly compared to last week and hovering at €770-780/t base ex-works, sources suggest.
Sales of sheet and tube seem to have resumed downstream, with end-users restocking before the August closures (see separate article).
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Very good overview of the weekly steel market.