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Italian coil producers hike offers by €15-30/t - 20 December 2011

Italian coils producers and large re-rollers have announced increases of €15-30/t for their base prices over the past week, Steel Business Briefing learns from market participants.

Italy’s largest re-roller, Marcegaglia, has hiked its base prices by €20-30/t for all type of coils for new orders, Marcegaglia’s commercial director tells SBB.

“The bottom has been reached. We have already posted new transaction deals at the new asking prices. We managed to do this thanks to the strong dollar which is protecting our domestic prices, as well as some of our production cuts, which we can finally see the results of. Plus we can see improving apparent demand,” he adds.

Traders confirm to SBB that Riva, the largest Italian producer, increased its prices by €15/t with effect from yesterday taking the asking prices for HRC around €465-475/t ($605-618/t) ex works. “These are for delivery between January and February,” a trader tells SBB.

The other larger southern European coil producer Arvedi has also hiked its prices. “We did that in particular due to the rise in scrap, we cannot sell making losses,” Arvedi’s commercial director tells SBB, without specifying how much it was hiking prices.

When asked whether these increase will pass, service centres and buyers tell SBB that they are still in a waiting position, waiting to place large orders. However, some suggest the increase could be achieved as other large players like ArcelorMittal have already lifted prices elsewhere in southern Europe.

“ArcelorMittal produces coil that differs from that of Riva and Arvedi, but nevertheless it already gave a clear sign in the market four weeks ago, closing some production and hiking its prices higher than others,” a trader says.

 

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