In Italy, significant demand for welded pipe is expected to re-emerge in the second half of June, as both distributors and end-users have low stocks and are expected to return to purchases.
Real demand is also particularly sluggish. In Italy, discounts are around 33-35 points. Values decreased significantly in May in line with the decrease in hot rolled coil prices. The weakness in pipe prices is expected to continue and discounts are expected to decrease by a few points per week for the next few weeks.
However, some sources believe that the bottom is not far away as the decrease in HRC import offers seems to have stopped. Both import and European HRC levels are expected to stabilise by the end of June. However, sources expect values for rolls and derivatives to continue decreasing over the next two days.
Some European countries such as France and Germany are also undergoing intense destocking. Sources expect German buyers to return to restocking by the end of the month, triggering a more balanced market in terms of supply and demand.
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