Italian distributors plan to continue increasing pipe prices due to the sharp increase in prices for hot-rolled coils, which is already being observed.
Several major players continue to purchase imported HRC to meet demand in significant volumes, despite the prospect of increased costs associated with CBAM and quotas. One customer told Kallanish that the company is purchasing materials from manufacturers who expect lower prices for CBAM, although it remains unclear how costs will ultimately change, and the company is currently reviewing its supply chain. The source adds that CBAM effectively acts as a duty and additional protection measure, while stricter import restrictions remain protective measures and quotas, which can be exhausted within a few days, given the significant needs of some large steel refiners in the EU.
Another market participant says that if protective measures are confirmed in accordance with the expected rules, a sharp increase in prices for HRC in Europe is likely. "The key issue for us is understanding when this significant growth will occur," the source comments.
According to the sources, market conditions for pipes and roll derivatives in Italy and France remain relatively calm after the holiday period. However, due to the recent price increase in Italy, there is an obvious demand again.
Pipe prices are also expected to continue to rise in the coming months, with the scale of the increase depending on the severity of the protective measures, according to data from re-rollers.
After all Italian distributors introduced new price lists in December, the discount rate is currently around 42-43 points. According to sources, manufacturers intend to reduce this level to 40 points this week.
Last week, one major European steel producer confirmed to Kallanish that its asking price for HRC is 670 euros per ton (779.39 US dollars per ton) for delivery. The Italian pipe manufacturer notes that with a 42-43 point discount, the price of a standard 40x40x3 pipe is about 770 euros per ton, which is not enough to make a profit. Rolling rolls require a difference of about 170 euros per ton between HRC and this workhorse brand to avoid cost reductions. This will mean that the price of the pipe will be at least 840-850 euros per ton, as well as a reduction in the discount to about 38 points in the coming weeks to restore margins.
The French source adds that passing higher prices downstream remains a difficult task, while Italian distributors have so far maintained a firm position in
