Prices for Italian welded pipes start to rise
The recent downward trend in Italian welded pipe prices is showing signs of reversal, consistent with a broader wave of price increases for coils, rolled metal derivatives, and other flat steel products.
According to a re-roller representative who spoke with Kallanish, there is an obvious increase in demand in the market, largely due to growing uncertainty about the ability of buyers to purchase materials on the import market. This hesitancy stems from changing trade barriers, including the Carbon Boundary Regulation Mechanism (CBAM) and the looming measures to replace safeguards. This encourages many buyers to return to purchases on the domestic market and in the EU.
As a result, prices for welded pipes are starting to rise and may strengthen further in the coming weeks as supplies decrease and purchasing activity resumes. Amid the first signs of a recovery in demand and uncertainty about imports, Italian distributors are actively reducing discounts on welded pipes, which reached 42-43 points in July.
Before the upcoming production shutdown in August, they intend to reduce discounts to 40 points. This step reflects the desire to restore margin levels amid rising raw material costs and strengthening roll prices.
Another seller of welded pipes notes the urgent need to achieve "a sustainable level of discounts that matches the cost of increasing the volume of hot-rolled coils," due to a tightening market and pressure from regulatory authorities such as CBAM
Last week, ArcelorMittal and other European manufacturers, including those in Italy, increased prices for hot-rolled and cold-rolled products, as well as hot-dip galvanized coils, by 20-30 euros per ton ($23-34) across Europe, which took effect for new contracts covering the remaining delivery dates in the third quarter and October shipments.
The revised base price for HRC is now set at 590 euros per tonne, taking into account the German market as a benchmark for Northern Europe. In Southern Europe, the asking prices are 580 euros per ton with delivery.
Natalia Capra France
Kallanish.com