Genoa - The current recovery is facing a series of complications that threaten to slow global growth. The prevailing fear is that the problems facing the Eurozone will be very hard and that those problems will force slower growth on the global economy. The weakness in the Eurozone is hindering US exports and there are some signs the US economy may start to slow in the second half of the year.

The strong China’s growth rate in the Q1 was probably unsustainably and Chinese are now attempting to cool their markets, limiting consumer financing activities.

Global markets are currently fearful and volatility is heightened for many reasons. Steel production will be influenced by the general market situation in negative. After three months of positive crude steel output, here in Italy, the situation has changed. The lower long product demands is reducing the Mills production, now about 50 percent of the capacity, thus lowering the scrap demand. Prices moved down and the highest seen in April are only a vague remembrance. The Mills inventories are now better recovered also due to the strong arrivals by vessel, around 80,000 mts the pig iron, 95,000 the scrap and 10,000 the HBI. The scrap export to Turkey by vessel has been abt 15,000 mts.

It is important to point out the lower and lower scrap collection and availability due to the slowing down of the manufacturing industry.

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

New arising E8:
* from Italy: 315
* from France: 325
* from Germany: 325

Shredded E40:
* from Italy: 320
* from France: 320
* from Germany: 320

Demolition scrap E3:
* from Italy 285
* from France: 300
* from Germany: 300

For June the prices are waited always in a negative trend, as Mills demand will remain lower.

Pig Iron - H.B.I.

Important the pig iron monthly arrivals, more or less on the past standard volume. Last contracts settled are reported around $480/pmt Cif for July shipment. Sellers are thinking it could be very difficult to reduce this level due to the high iron ore and coking coal prices. HBI price is facing the same problems.

Steel

The long products prices are following the raw materials weakness and the lack of demand. Some better sound for coils, beam and pipes.

Quelle: Quelle: Alocci Rappresentanze Industriali

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