Producers believe that the downturn in prices is over and are trying to maintain the base delivery price level of around €800/ton. As going below this level would negatively affect their margins, they resist to accept the lows of the recent range. Demand for HDG in particular has seen a slight revival, while CRC demand continues to decrease. Local producers are offering delivery times of August and September for HDG and July for CRC.
Overall, prices are down by around €150/ton compared to early May. Limited deals suggest that HDG levels are around €770-780/t ex-works. Offers for CRC and HDG are considered to be too low and buyers are struggling to find lower priced cargoes. CRC prices are under pressure from low import offers from Asia around €680-690/t cost plus freight (cfr). Local CRC material is subject to a base ex-works price of around €750-760/t, depending on the buyer and volumes.
Currently, HRC contracts in Italy are hovering around €650-660/t ex-works.
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