Italian coil prices remain stable relative to last month, but purchasing activity is subdued, Kallanish hears.

Domestic hot rolled coil transactions are reported to be averaging at approximately €630-650/tonne ($694-716) delivered, consistent with the levels observed in March. A mill source indicates that buyers are taking a cautious stance, with re-rollers showing reluctance to engage in purchasing. Inventories at service centres are currently at an average level, with small tonnages still being purchased to address stock gaps.

The stagnant market is associated with sluggish downstream consumption, as there are no signs of recovery in end-user demand. Despite market uncertainty, HRC domestic prices are expected to rise as long as import purchases, particularly by service centres, remain low. On 1 April, when EU safeguard quotas were renewed, certain buyers opted to leave material at ports, clearing only portions of their purchases to avoid paying duty. This was particularly the case for hot-dipped galvanised coil sourced from Vietnam.

Sources indicates there are essentially no interesting HRC import offers available, with the exception of Turkey, which is priced at €600/t cfr Italy duty paid.

In early April, ArcelorMittal implemented a €20/t increase in coil prices for northern Europe, for new deliveries in June. The asking price for new HRC allocations now stands at €700/t base delivered. Northern European contracts are said to be gradually nearing this level. Southern European HRC prices, however, are expected to take longer to surpass the €650/t base delivered threshold, which is already proving to be quite challenging to attain.

April is expected to be a slow and short month, particularly in Italy due to the 25 April bank and bridge holidays, as well as Easter.