According to SteelRadar data, HRC prices in Italy rose by EUR 5 to EUR 635 as of 10 June. This increase is attributed to higher slab prices and a steady rise in processing costs. Low order volumes continue in production plants and warehouses, which is in line with the trend across Europe. Small and medium-sized plate buyers are generally buying as much as they need and avoiding building up stocks. CRC prices also increased by EUR 5 to EUR 750 in the same period.
Signs of revival in the construction sector!
Italy's construction sector has seen a revival in recent weeks. Although the Hamburg Commercial Bank's construction purchasing managers' index fell to 48.5 points in April, rebar prices rose by EUR 35 to EUR 640 on 10 June. This recovery looks promising for the future of the sector.
Italian steel suppliers have to compete with cheap imports from Asia. In May, it was reported that steel from Asia was about EUR 100 per tonne cheaper than local prices. However, the long lead times of these imports cause deliveries to be delayed until August/September. Weak demand in East Asia is causing mills in the region to turn to exports to Europe, which is increasing competition. The European Commission's safeguard quotas for HRC imports allow trade to take place without additional customs duties.
Galvanised steel coil prices also increased. As of 10 June, they increased by EUR 4 to EUR 850. Access to sheet produced in Italy is good and new orders can be delivered in early July. However, Italian mills face limited options for sheet supply as end users seek to avoid Russian raw materials due to the war in Ukraine. Russia continues to export small quantities of plate to Europe, selling in other markets.
In the new week, steel plate prices in Italy remained stable at EUR 690, while angle iron prices remained unchanged at EUR 710. Italian rollers prefer Asian plate producers. Asian mills welcome this alternative sales channel due to low domestic demand.
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