New sources of roll imports replace traditional suppliers: Sandrini
Italian coil service centers reported minimal coil imports from Asia in the first quarter, while recent negotiations indicate that Turkey and Indonesia are positioned as the main suppliers for the European market.
As of January 1, a significant amount of the material had been successfully cleared, which had previously accumulated in Italian ports.
According to Tommaso Sandrini, president of the Italian company San Polo Lamiere Service Center, understanding the existing EU quota levels from Turkey is important because it is the decision of the European Commission regarding Indonesia. He warns that Indonesia may be integrated into the system of protective measures over the next year and a half.
Sandrini predicts that distributors will focus their roll purchases more on the EU domestic market this year due to protectionism. According to forecasts, the volume of imports of rolls will decrease due to the reorientation to new supplier regions.
Traditional suppliers such as Japan, Vietnam and Egypt will have reduced volumes, while shipments from new suppliers from Southeast Asia in Malaysia, Indonesia and Thailand are expected to increase. India will maintain stable export volumes to Europe, while Turkey's presence will increase.
India does not currently appear in Italian customs clearance statistics, as there have been no sales of rolls from this country since the start of the EU anti-dumping investigation into hot-rolled coils from this country. However, this country represents an acceptable procurement option, and it is expected that it will return to it in the near future. Last week, during the Made in Steel event, Indian offers reappeared on the European hot-rolled and cold-rolled roll market.
However, over the past two weeks, various Asian suppliers have taken a cautious stance, seeking clarity on the available EU quotas, while at the same time questioning the significant difference between European and import prices.
The price difference between the latest offers from European suppliers and imports from Asia is about 160 euros per ton (180 US dollars), Kallanish notes.
Sandrini expects stable coil prices in Europe, albeit with a slight downward adjustment. Currently, there are no signs indicating a possible price increase in the coming months. Current market conditions point to insufficient recovery in demand, sufficient supply, and the absence of external factors that could potentially disrupt supplies to Europe.
"We have read the news about the revision