News Room - Steel Prices

Posted on 18 Jun 2024

Italian stainless flats prices increase on shortage

Transaction prices for stainless flat steel in Italy are on the rise, just like in other EU countries. In recent weeks, European steelmakers have accumulated orders that could not be placed with Acerinox or Outokumpu because of strikes affecting both plants. Demand downstream is weak, but supply is reported to be even weaker.

Mills in Europe are experiencing delivery delays. Imports of cold and hot rolled coil are being delayed as vessels are avoiding the Red Sea due to piracy and are required to take a longer route to reach southern Europe. “If you are expecting material from Asia in June, it is likely that the delivery will be made in August,” a large coil buyer says and adds that the supply chain looks quite complex.

The average price for domestic stainless steel CRC is rising to €2,700-2,750/tonne ($2,893-2,946), although asking values for September lead times are higher. Domestic HRC is at about €150/t below this level. European mills are currently pricing CRC at an average of €2,800-2,850/t, with a September lead time.

Prices of Italian stainless cold rolled sheet are also increasing. Current values for September delivery are at €2,900-2,950/t ex-works. Demand for tubes continues to be low as supply exceeds consumption. Sources confirm re-rollers are attempting to raise values by approximately €100/t.

While mills’ levels are on the rise, distribution prices are experiencing a slower increase. In the first quarter, there were financial losses across the value chain, with some service centres and re-rollers being negatively impacted. Nevertheless, sources concur that Q2 has been positive and Q3 is also anticipated to be, Kallanish notes.

According to a market note from Italian steel trade association Assofermet, there appears to be tension in the market. This is due to the shortage in supply amid consistent demand from users. The low availability is the result of the ongoing strike at Acerinox, delays in deliveries from other continental producers, and limited imports. The note states that stocks are “below average” in Italy, adding that domestic scrap prices continue to hike due to limited supply.

Source:Kallanish