Italian hot rolled steel producers are raising asking prices to € 500 /t ($ 566.7 /t) ex-factory, market sources for Kallanish say. One manufacturer increases its price to € 520 per tonne ex-factory.
For the first time in several months, the Italian HRC touched EUR 500 /t after a period of low demand and low supply. However, the uncertain market for service centers and resellers means that transaction prices differ markedly from current asking prices.
This week the mills manage to reach and consolidate the price level of 470-480 euros per ton, based on the volume of work in progress. So far, Kallanish has not heard of any contracts signed at a price of € 500 /t. However, according to sources, due to a number of factors affecting the market, the target of 500 euros /ton may be achieved in the coming weeks. These factors include a general surge in European flat products growth, rising raw material prices and, in particular, the current Turkish HRC increases being offered to Italy.
However, service centers are facing difficulties with the level of final demand, which they have dropped significantly in recent months. The service centers that spoke to Kallanish do not believe the current increases will continue because they are unable to pass them on to their customers. They also assume that the fields are being destroyed. Therefore, some of them chose not to buy and rely solely on their shares as a reminder of the month.
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