Italian billet prices from local producers have lost €10/tonne ($11/t) in the second half of July while Chinese import prices have gained $10/t on contracts for September loading, industry sources tell Kallanish.

Chinese prices are now the southern and Western Europe benchmark, as previously reported. Imports from other third countries and local material are tending to adjust to Chinese price movements. Quotations from Italian, Spanish and French producers are now at €360-370/t ($394-404/t) ex-works but order levels are low because even at these levels, prices are not competitive.

Chinese offers are now at $305/t fob, $330/t cif Italy, up from $320/t cif of two weeks ago. In September around 80,000 tonnes of Chinese billets will reach Italian ports to supply several Italian buyers, sources say.

Black Sea billets have also lost $15/t and are now at $335-340/t cif Italy with delivery following a 6-7 day sea trip. Sources also suggest that Italian, Spanish and French customers are buying through traders and not directly from Chinese mills.