Callanish notes that Italy is experiencing stagnation in both the long products and flat products sectors: pipe prices are declining, while sheet prices remain stable.

The first quarter results were distorted by some restocking at distributors due to price increases related to the conflict in the Middle East. However, since April, the distribution sector has significantly reduced its purchases, continuing to sell only small volumes. Purchases throughout the value chain are limited by immediate needs and often by a minimum of goods

According to sources, demand for certain types of products is growing, especially for profiles and welded pipes. The demand for pipes remains, but prices are still lagging behind the growth in prices for hot-rolled coils. Discounts on tubes remain stable compared to May and amount to 41-43 points. Prices for hot–rolled sheet are also held at 760-780 euros per ton (885.6-908.9 US dollars per ton), although lower prices have been recorded on the market.

"We work little and very poorly. Visibility is zero; one day we sell, and the next day we don't sell anything at all. Everything was fine for the first four months of the year, but the market has really slowed down since May. Now it seems that the situation has completely stalled," says the Kallanish distributor.

Two more distributors confirm that prices for both long and flat rolled products are basically stable. "Factories would like to raise prices, but the market does not accept[this], and distributors often lower selling prices because they need to generate cash flow," one of them adds.

Profitability has improved overall against the background of rising prices, but the supply volumes of both products are still missing, and no significant changes are expected in the near future. Uncertainty remains in the production sector, as customers avoid large purchases and combine different varieties in one batch. One source says stocks remain relatively high because current demand does not allow for rapid depletion, adding that he will not replenish stocks at current prices, but will continue moderate purchases.

Author: Natalia Kapra

Kallanish.com

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