Italian refiners are raising prices by about 40 euros per ton ($45.8 per ton), with some of them completely stopping sales, while others have already notified customers of the increase, which takes effect immediately.
This step is the first reaction of the market to the reduction of quotas, which also apply to welded pipes, Kallanish notes.
Italian rolled products manufacturers have also suspended sales as steel producers across Europe consider similar price increases.
The market for rolled products remains weak, and buyers have not yet returned to purchasing in Europe. They are expected to do so in September, when contracts and volumes will inevitably rise, given the lack of alternative sources of supply. New price offers for the roll are expected to be published this week.
June was a particularly difficult month for roll and derivative sales. Pipe prices decreased by about 40 euros per ton due to difficult demand in the secondary market and a complete lack of visible consumption, while pipe discounts reached 43-44 points. All resellers announce a three-point discount reduction, which is equivalent to a price increase of 40 euros per ton.
One of the review videos says that the new trade measures will still greatly change the market.
In addition to being particularly harsh on HRC, the regulation severely restricts pipe imports. For example, Ukraine, which was hoping for an exception, was allocated a quota of only 6,000 tons per quarter, compared with the previous quota of almost 20,000 tons.
A sharp reduction in pipe quotas will inevitably push buyers to look for European suppliers, while the source adds.
Another advertiser claims that at the current discount level of 44 points, the price of a 40x40x3 square welded pipe for a workhorse is about 800 euros per ton, which is not sustainable at the base price of S235 black HRC of 700 euros per ton, and it remains to be considered. Price increases for HRC are expected already This week.
Author: Natalia Kapra
Kallanish.com
