Market participants from Italy believe that the panic on closure of Ilva will spread around all domestic operators including distributors, Steel service centers and rerollers etc.
As per some experts, it is difficult to imagine the pressure level at Marcegaglia in this moment. For Marcegaglia, that is consuming 5 million tonnes of HRC per year, Ilva is / was the only and sole supplier able to guarantee the survival. 100,000 tonnes to 200,000 tonnes per month is the quantity of HRC that Marcegaglia is buying from Ilva
Who now will give to Marcegaglia all they need in open order, open terms payment, prices to be discussed…etc etc?
And all the SSC used to buy from Ilva 2nd choice, over rolling, buying exactly and only what they need month by month or even week by week, from where they'll get same service?
It is quite obvious that prices will rebound. and import will become more and more important.
