Italy sees unprecedented demand for rolled metal

Italian service centers are experiencing an unprecedented surge in demand from the automotive and home appliance industries. Demand has been growing steadily since August, but the problem remains available.

Despite the increase in prices for Italian rolled metal products, spot buyers and customers buying on annual contracts, such as large manufacturers of household appliances, are increasing their orders. Sources say they are "... desperate to find material." Coil import prices remain too high and delivery times too long.

At the same time, European coil producers cannot guarantee a stable supply flow, especially in Italy, where ArcelorMittal Italia produces minimal capacity and has supply problems. Deliveries from ArcelorMittal's facilities in Fos-sur-Mer in southern France, which traditionally supply Italian companies, are also unreliable. Callanish understands that many of the workers there are still laid off, and the launch of blast furnace # 1 has again been delayed due to technical problems.

The third quarter is said to have been the best in history for a major appliance manufacturer. “Manufacturers of household appliances have huge reserves,” the service center comments. “The activity of our customers is growing rapidly, and they require twice as much materials as their regular orders. Delays in the delivery of rolls are causing a crisis throughout the value chain, and sometimes you miss a chance because you don't have material to sell. ”

Demand is volatile and the auto industry is also ordering large volumes of cargo, he adds.

Sources confirm that the cost of Italian hot rolled coil is currently € 480-500 per tonne (USD 567-591), while cold rolled coil and hot-dip galvanized metal averages € 550-590 per tonne.