Genoa - The strong rebound of the world crude steel capacity utilisation ratio, during the first three months of 2010 (from 72.2% to 80.2%), placed significant pressure on the iron ore / coal / scrap chain globally. Asia produced the 27% over the first quarter 2009, EU27 the 37%, North America the 53.8%. The new iron ore and coking coal quarterly benchmark will speed up the prices movements, following the steel demand up and down. It means more strong fluctuations of prices in short time.

From the middle of April the general sentiment has been changed and the prices slipped back. The short future will be influenced by the two speeds economic growth – always strong in Asia, lower in North America and EU27 –, the monetary tightening measures in China and the deep concern of the financial markets due to the Greece sovereign credit risk.

In Italy, Mills involved in the rebar and profile production are always working at low rate, but better is the pipes, beam and coils production. During the first half of April some scrap price peaks broke the € 400 wall, following the demand. Starting from the week 15 prices have fallen strongly due to the better Mills inventories, the international market movements and the rumours about some cargoes purchased from Canada (three or four shipments) by the Italian End-users.

Mills inventories are now better than before, but still not full. The monthly arrivals by vessel have been around 62,000 mts the pig iron, 14,000 the scrap and 16,000 the HBI. The scrap export to Turkey by vessel has been abt 13,000 mts and about 2,000 mts the deliveries by containers to Far East customers.

Following the April average prices reported by the Mills Association (€/pmt delivered):

New arising E8
• from Italy 340
• from France 350
• from Germany 350

Shredded E40
• from Italy 350
• from France 350
• from Germany 350

Demolition scrap E3
• from Italy 310
• from France 330
• from Germany 330

For May the prices are waited always in negative trend, with further reductions.

Pig Iron- H.B.I.

The pig iron arrivals have been returned to the important volumes, as in the past. Last contract settled is reported around $520/pmt Cif for June shipment and offers are till now on the same level. HBI have been sold around $350/pmt Cif for prompt delivery.

Steel

After the last increases, the prices are now following the raw materials weakness. Demand is better for coils, beam and pipes, but always lower for rebar and profile.

Quelle: Alocci Rappresentanze Industriali

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