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Kallanish Kallanish

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February, 18th 2020

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JAN 27
11:47

Italian HRC transaction prices see January rise

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Italian domestic hot rolled coil transaction prices are increasing compared to the beginning of January, Kallanish learns from market sources.

Producers are now asking €460-465/tonne ($507-513/t) base delivered while another large steelmaker is asking €470/t base ex-works. This is up from early January’s level of €440/t base delivered. Transaction prices have struggled to gain €15/t this month compared to December and are now at €440-450/t base ex-works. The high point of the range is also hard to obtain. Producers however are confident of reaching €460/t base ex-works in February, sources suggest.

Italian coil prices have been hit by slowing domestic market demand. Tube discounts are being lowered with some difficulty. Local service centres meanwhile are refusing to purchase as they do not want to pay more for product and prefer to use their own stocks where they can. Sellers believe that stockists will go back to buying next month.

Service centres are issuing enquiries for imported material but are also refusing to pay increased prices for coil from offshore. Due to their clients having slowed consumption, passing increases downstream is becoming particularly challenging, sources at two service centres tell Kallanish.