Vatican City: Galvanized Plain Sheet prices remained stable at the end of the second week of October, with buyers deferring purchases due to overstocking and poor demand from terminal markets. However, manufacturers reported increased demand over the week and signed more contracts for export sales to neighboring European markets such as France and Germany. As per players, the Galvanized Plain Sheet markets of France and Germany are more dynamic than Italy. Overall, dealers report a continued decline in consumption for the product, with domestic sales at low tonnages.

According to Galvanized Plain Sheet manufacturers, there is no point in making an offer because buyers are not in the mood to buy, and trading activity is zilch. As there is no demand, mills can offer anything, but no orders are forthcoming. Furthermore, suppliers claim that Galvanized Plain Sheet inventories in the Italian market remain high while demand is low. End users are increasingly reducing work hours and production. According to sources, the main reasons for the stable trend were low demand from end-user sectors, competitive imports, and rising production costs. As a result, European producers have recently refrained from providing firm indications for Galvanized Plain Sheets due to weak buying activity.

According to our sources, the Italian market is dead, and buyer stocks are at an all-time high. The price is no longer suitable. Furthermore, the Italian government approved the energy bonuses for businesses by late September 2022. As part of the decree, operating steel producers will receive a 40% tax break for energy spending from October to November. However, manufacturers anticipate that there will be no improvement in the next three to four weeks.

Last week, the weekly price assessment for domestic Galvanized Plain Sheet, EXW Southern Europe, was USD 850–870/MT. The evaluation is based on the lower and upper end of the offered buyers' price estimates. Transactions were limited in the market because Italian buyers had large stocks and preferred not to trade.

According to ChemAnalyst, the prices of Galvanized Plain Sheets are expected to show a declining trend as demand falls. Furthermore, several market participants are waiting for a new effective energy policy as Italy is already dealing with an energy crisis and the risk of entering a recession in the coming quarters. Until the new efficacious guideline is implemented, electricity prices will continue to surge, further dampening the Galvanized Plain Sheet demand outlook.