Silence on EU quotas leaves Italian roll market speechless
The Italian roll market remains mostly at the same level with stable or weak activity, unchanged since the beginning of the month. Kallanish notes that slow consumption and lower prices in the secondary market lead to a gradual depletion of roll stocks at steel processing plants.
Both buyers and manufacturers are awaiting confirmation and publication of the quota allocation ahead of the introduction of new protective measures from July 1. Despite the publication of some information, there is no certainty about the details of the quotas, as there are only a few days left before the deadline.
"Before we can comment on this, we must wait for the official final version of the document from the EU. We have heard about some preferences for the countries participating in the Free Trade Agreement, of which there should be about eight, and for the rest - about a global quota regulated in the order of receipt of applications. It is also possible to introduce restrictions," one major steel buyer comments.
"I can hardly believe that we don't have and won't have any news. These people are incompetent and do not realize the consequences of their actions," says a source at the service center. Other sources expressed considerable dissatisfaction with the European regulatory authorities.
Currently, demand for hot rolled roll (HRC) remains limited and stocks are well filled, but several refiners expect purchases to resume in September.
A source at the plant says inquiries are already coming in, while the steel refiner expects the sector to resume purchases next month.
There is expected to be a shortage of some non-standard brands and sizes, including embossed materials. One of the sources at the service center told Kallanish that a surge in purchases in Europe is expected in September, while imports of non-standard sizes will continue in July, although it is unlikely that such materials will be cleared before October 1.
"We will only buy in Europe, but we won't have a strong contract base, which will lead to higher prices.across the entire value chain. However, at this stage, I do not know how our customers will react. They will probably reduce volumes, as many of them cannot afford to buy at high prices," the source says.
One trader believes that Brussels is deliberately hiding information about the new quota allocation. "Their goal is to reduce imports. Because of the uncertainty, no one is importing, except for large companies that have no choice, but even large companies are now waiting," they suggest.
Roll prices in Italy are stable week after week. According to sources, the price of a roll of HRC averages 670-680 euros per ton (767.8–779.3 US dollars per ton), while