In Italy, hot rolled coil basis prices
are unchanged month-on-month, according to MEPS. Buyers report that third
country imports are less aggressively priced. The weak euro has damaged their
competitiveness.
Commodity plate selling figures have fallen over 2 percent. Re-rollers continue
to benefit from low slab prices out of Russia and Ukraine.
Many service centres are living off their cold rolled coil stocks, for now, as
they become ever more cautious about ordering forward. Some gaps in inventories
did occur due to a lack of deliveries last month, when Ilva had legal problems.
The dispute is now settled and there is plenty of material in the marketplace.
Russian suppliers are offering at competitive prices.
Coated coil basis prices are stable. The auto sector is faring better now. The
new Fiat models are very popular. However, no real improvement is envisaged in
construction investment in the near term.
After holding selling values steady in February, low carbon wire rod suppliers
have agreed a minor discount in March. A poorly performing construction sector
continues to cause lacklustre demand for recoil. Although structural sections
and beams sales are sluggish, customers agreed to pay the small advance
implemented last month.
The rebar market is extremely poor, with low consumption due to a lack of
investment in the building sector. Suppliers are unlikely to secure a rise.
There is less aggressive selling by Chinese suppliers because of the
devaluation of the local currency. This has enabled domestic mills to roll over
last month’s merchant bar price for March business. Nevertheless, there is
still a lack of building activity.
Source-Meps