Italian industry is stagnating, imports are expected to bottom out
The Italian and European roll market as a whole remains subdued amid continued price declines and sluggish consumer activity. However, as Kallanish notes, import prices seem to have bottomed out after a sharp decline.
According to the three main buyers, import purchases have resumed, especially from Asian suppliers. One customer notes that he prefers to buy goods from closer Mediterranean countries such as Turkey and Algeria. Some service centers also carry out selective purchases, both from EU countries and from other sources, when prices are considered competitive.
Current import transactions from Italy range from 460-520 euros per ton (532-602 dollars), depending on the origin and volume. Meanwhile, domestic producers are still offering tight delivery times, and prices are reported to be 540-560 euros per ton.
The service center informs that Turkish factories are no longer willing to lower prices for HRC. He expects stable import prices in the coming days. Turkey's current offers range from 470 euros per ton, excluding duties, to 510 euros per ton. A source at the service center believes that the contract price of 500 euros per ton of cfr will be approximately 550 euros per ton delivered to the warehouse.
The Indonesian HRC is currently offered at a price of 470 euros per ton cfr, while Indian suppliers offer higher prices of 510-520 euros per ton cfr range. According to the trader, import prices have probably bottomed out, and any new orders from Asian origin are expected to be affected by the cost of the Carbon Boundary Adjustment Mechanism (CBAM) from now on. Two additional sources confirm that, apart from possible changes in the euro-dollar exchange rate, further price declines are unlikely.
As for the cold-rolled roll, buyers are actively involved in import operations. Indian and Turkish CRC were purchased at a price of about 600-610 euros per ton in Italy. Preference is given to Turkish suppliers due to shorter delivery times and faster transportation, as navigation takes only two days.
Natalia Capra France
Kallanish.com