Italian coil demand has come back this week after a lull, but the market remains uncertain with low visibility and shortening lead-times, market participants tell Kallanish.

Hot rolled coil producers are selling for November and December. Domestic values remain stable in the range €850-860/tonne base ex-works ($985-997/t). Some contracts have been agreed at €900/t ex-works, but for very low tonnages and quick delivery. This week, European producers are expected to sign automotive and appliance contracts, which should give some guidance to the European market in terms of price. Automakers are implementing stoppages throughout Europe due to the global component shortage worsened by lower car registration figures reported throughout Europe.

To complicate matters, welded tube sales are said to be sluggish and marked by descending prices.

Meanwhile cold rolled coils and hot dipped galvanised activity is also subdued with lower demand and a wait-and-see attitude on the side of service centres and automotive companies that buy HDG. Prices remain stable between €1,100-1,150/t base ex-works in Italy. HDG automotive contracts this week should provide some visibility.

Some sources forecast lower volumes and prices in new automotive contracts that have been put off due to uncertainty. Depending on the automotive sector buying behaviour, coils prices are said to have stopped falling because of the current high energy prices.