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Kallanish Kallanish

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April, 2nd 2020

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FEB 24
10:48

Italian sections' prices dip

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Italian heavy sections’ prices are lowering under the influence of falling scrap values, market sources tell Kallanish.

Prices are losing €10/tonne ($11/t) compared to ten days ago. Despite January announcements that these would rise, they remained flat at first but have declined in the past 10 days of February affected by falling scrap values. Italian long products are currently going through a phase of price decline and low demand as buyers are adopting a wait-and-see attitude.

The Italian market remains competitive because of offers of cheaper material from Spain. Moreover, business activity in the Lombardy region is slowing this week due to the coronavirus outbreak. Some towns including Milan and Cremona have shut down schools and public places and asked people not travel, Kallanish hears.

Current transaction prices for the first category of beams have fallen to €540-545/t ex-works from mills. This includes €160/t base + €385/t size extras. The distribution sector is selling at €20/t more. Prices increase by €20/t for each subsequent category, sources confirm.

Because of market uncertainty some distributors and service centres are buying so-called ‘second choice’ material. Beam prices are forecast to remain at  €160/t base ex-works until the end of the month.