The prices of rolled steel in Italy have continued to rise for several weeks in a row. At the same time, demand for sheet and tube products in the manufacturing sector remains low, and consumer activity remains limited.
Orders for rolled products are still low, and there has not yet been a noticeable return of customers to the market. Several market participants reported that they continue to purchase hot-rolled, cold-rolled and galvanized coils outside Italy. Import purchases have declined since mid-September, when Asian factories began to raise prices.
Despite a sufficient level of inventory, many buyers place only small shipments from European manufacturers to compensate for the resulting shortage.
According to Kallanish, the cost of a hot-rolled roll in Italy is 730 euros per ton on terms of delivery from the factory. In September, service centers and distributors bought the material from various Asian manufacturers and in Turkey for 560-580 euros per ton. In the second half of the month, Asian plants raised their offers, and now there are reports of deals on the market at 675-700 euros per ton on CFR terms.
Despite the rising cost of imports, buyers continue to consider them in order to diversify supplies and not depend solely on European manufacturers. One of the service centers reported that, if possible, it buys imported material on DDP terms, and in other cases covers limited needs from European suppliers. However, there are almost no DDP offers now, and most suppliers operate under the CFR scheme.
Import transactions for galvanized coils are concluded at the level of 750-760 euros per ton CFR, excluding the costs of the CBAM mechanism. Taking into account these costs, the price is approaching the current European level, where the material is offered at 840-860 euros per ton. A large service center notes that it is forced to purchase imported galvanized coils due to limited supplies in Europe and the need to replenish stocks.
The new benchmark for hot-rolled black coils in Italy and in Europe as a whole is 730-740 euros per ton on a supply basis, with offers reaching 750-790 euros per ton. Demand remains weak, but manufacturers are not making concessions for either small or large buyers.
"Despite the current market protection, manufacturers understand that demand in Europe will recover and prices will continue to rise," the source said.
The service centers are still profitable due to cheap purchases of Asian rolls made in the first half of the year. However, according to them, processing is very slow, and production volumes are not increasing.
"Due to rising import prices, we are trying to be proactive. We do a lot