During current week HRC prices in Italy have plunged by a significant percentage as domestic producers have pushed heavily for booking orders.
In Italy rumors are indicating that Marcegaglia Group would have booked with domestic Mill Riva a new contract for about 100,000 tonnes at a price of EUR 450 per tonne base parity. Other customers are indicating that a price of EUR 460 per tonne EXW or even DDP would be easily achievable from all domestic producers.
Offers from imports are now given at prices ranging EUR 450 per tonne to EUR 470per tonne CFR FO, with clear decreasing trend also helped by stronger EUR. Particularly Erdemir is indicated as very active with offers, given also outside usual tenders, between EUR 460 per tonne to EUR 470 per tonne CFR FO.
As to next scenario, opinions in the market are hugely deferring between those indicating that HRC price will soon fall below EUR 400 per tonne level and others convinced that prices will recover before end of the year, due to unsustainable stock low level situation.
It is reported that fat product prices are facing severe pressure and are continuing to go down both because of no demand and exchange rate between EUR and USD.
As per latest information possible selling prices are
1. CR DC 01 thickness 0.5 mm - Around EUR 580 per tonne CIF FO LC 90 days
2. HDG DX51D, Z180, average thickness 0.6 - 0.7 mm - Around EUR 600 per tonne CIF FO LC 90 days
Right now with 1 EUR = 1.40935 USD, prices are equivalent to about USD 810 per tonne to USD 815 per tonne and USD 840 per tonne to USD 845 per tonne respectively for CRC and HDG.
In North Europe situation is very similar with prices going heavily down both on flat and long products. Domestic producers such as Corus and local German Mills are pushing to collect as many orders as possible with full availability of negotiating important discounts in front of interesting quantity.
Long products are continuing to suffer because of consumption lack and mills are still producing at very reduced pace.