Genoa, Italy — Noone knows if this year, just started, will be the year of financial crashes, economic chaos and great worldwide depression. However, now positive news are coming. The iron ore prices that are rising after the last months collapse. The lowering barrel price. The strong increase of the American GDP. The more balanced exchange rate USD/€. The Chinese central Government support to the economy, including the Central Bank interest rates cut to re-boost the growth, and some better scrap prices paid by the Turkish mill to cover their February needs.
In December in Italy, it has been strongly influenced by the long mills end-of-year stop of production. After some 5/10 € increases during the first half of the month on the domestic market, mainly for fast deliveries, the market remained quite. The few monthly import contracts from the European suppliers have been settled with only small price adjustments. The arrivals at the Italian ports have been abt 10 Kt for scrap, abt 185 Kt for pig iron and abt 20 Kt for HBI. The mills inventories are now well recovered, also due to the long stop of production.
Following the December official average prices reported (€/pmt delivered):
New arising E8:
Demolition scrap E3:
Prices for January are expected in the range from unchanged to plus 10€, depending on the weather conditions and the Turkish Mills demand. It is important to point out that the Stefana mill is currently under temporary receivership investigation asked by the creditors. The mills stopped the production in December. It means that about 60 kton of scrap on monthly basis will remain on the market available for other end-users.
As regards ILVA it is now official that, by means of a new Legislative Decree, the Italian government will manage the company for 36 months max. Up to three commissioners will be appointed to continue the cleaning up operations and to relaunch the company for selling it on, if a buyer could be found, with the aim to protect jobs, the areas surrounding the Taranto plant and the investments done.
PIG IRON – H.B.I.
The pig iron arrivals have been very high, including a large vessel from Brazil. The inventories at ports and mills are always well recovered. The last pig iron offers are quoted around the $385/390 pmt CIF, for February shipment. The HBI arrivals have been mainly from Russia, being since the end of December out of the market the Libyan producer for a long maintenance. Offers for January shipments are reported around USD 355 pmt CIF Italy.
Source: Alocci Rappresentanze Industriali