Italian hot rolled coil demand is still stagnating after the market went quiet in mid-June due to the steep increases seen in prices.

Competitive import offers from Asian countries are continuing to garner interest from Italian buyers. For high volumes, some Asian-origin offers of HRC have been heard at €1,000/tonne ($1,187/t) cfr for August loading, traders confirm.

Domestic HRC prices are stable compared to last week at €1,100-1,200/t base ex-works for service centres and spot contracts. However, the high point of the range is a rare achievement and only for prompt delivery and low tonnages. Lead times from local mills are for between September and October, although some producers are rumoured to be offering for end-July and August delivery on account of domestic order books drying up, Kallanish notes.

The value chain in Italy is said to be significantly slowing down as end-use sectors are reducing production due to the high prices of steel. Both service centres and re-rollers refused to book material at €1,100/t base ex-works last week.

The domestic market for cold rolled and hot-dipped galvanised coil remains particularly tense because of global tight supply and limited import offers. Domestic prices remain at last week’s levels of €1,250-1,380/t base ex-works, sources say.