The price spread between hot-rolled coil (HRC) and cold-rolled coil (CRC) in the Italian flat steel market has started to widen again. As of July 22, HRC was assessed at EUR 705/tonne EXW in Italy, while CRC was assessed at EUR 820/tonne EXW, bringing the price differential between the two products to EUR 115/tonne.
Market participants said that HRC prices have found support in recent weeks due to the European Union's tighter import quota regime. Meanwhile, CRC prices have remained elevated, supported not only by the product's higher added value but also by processing costs and relatively limited supply. As a result, the price gap between HRC and CRC has widened once again.
According to market sources, despite subdued trading activity during the summer period, the EU's new import policy continues to support the HRC market. At the same time, the CRC premium is expected to remain intact unless there is a significant recovery in downstream demand. Consequently, both demand conditions and import availability are expected to remain the key factors influencing the HRC-CRC price spread in the coming months.
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