HRC prices in Italy are rising due to new EU import guarantees
Although the new EU import quotas are supporting the domestic market, higher supply prices have not yet led to deals due to weak demand. Italian producers of hot-rolled coils (HRC) are trying to raise supply prices by about 10-15 euros per ton, which is facilitated by tougher European import measures and expectations of supply cuts. However, according to market sources, this increase has not yet been reflected in actual transactions, and current supply levels remain mostly indicative. As of July 13, prices for HRC in Italy are estimated at 680-690 euros per ton, excluding VAT. Consequently, producer price targets of 700 euros per ton of EXW and above have not yet been widely adopted in the market. Nevertheless, the increase in prices for imported granular pellets after the introduction of the new EU import quota regime on July 1 provided some support to the European domestic market. Market participants believe that if alternative supply options continue to decline, some consumers may eventually have to accept a price level in the region of 700-705 euros per ton of EXW to ensure the safety of raw materials. On the other hand, market activity remains very limited due to the summer recession, and buyers are not particularly willing to place new orders. Service centers and end users are reportedly purchasing only those volumes that are sufficient to meet their immediate needs. Many sources indicate that any significant market recovery is likely to depend on a potential improvement in demand after the summer holiday period, especially starting in September.
Author: Editorial staff of SteelRadar
Steelradar.com