Daniele Papa, senior sales manager at Marcegaglia, remains confident about coil prices going into 2018. European pricing policy at suppliers has become stronger and developments in the market are supportive rather than discouraging.

Papa confirmed during Kallanish Europe Steel Markets in Madrid this week that the momentum for fourth quarter coil demand was slow, but this has not brought a collapse in prices, as in previous years. The main reason that coil prices have held up in Q4 is that there are positive expectations for the market going into 2018.

“During recent months buyers have tried to request lower prices due to the correction in raw material prices globally, but mills in Europe have managed to hold their levels thanks to a good outlook and the way the market is reorganising in Europe,” Papa explains. He adds that the market is now driving the market rather that input costs.

"It is true that we still have imports and new suppliers in the market, but these new importers are entering the market because the price in Europe is higher than it used to be," Papa adds.

According to Kallanish price assessment, Italian HRC prices since the beginning of September have lost only around -2%, in reaching the current level of €495-505/tonne ($583-594/t) ex-works base. During the period prices reached a peak at €525/t ex-works base in mid-September.

Looking ahead, Papa notes that he believes the spread between North European and South European coil prices will narrow further as the European Commission approves the takeover of Ilva by the ArcelorMittal/Marcegaglia joint venture.