ITALIAN HRC BUYERS ARE AVOIDING IMPORTS DUE TO DELAYED CLEARANCE.

Price Drop:  Compared to last month, import offers for HRC into Italy from Asia have dropped by about €20/tonne ($21).

Low Buying Interest:  Despite the price decrease, buying interest for HRC remains low.

Price Range:  Current HRC offers from Asian suppliers range from €570-580/tonne ($617-628) cfr Italy, with Turkish material available at €570/tonne cfr.

Customs Clearance Delay:  Spot market coil sales for import are expected to clear customs only in April 2025.

Customs Clearance Regulation:  Italian buyers can clear material imported in Q2 but left in consignment at ports starting January 1, 2025, to avoid immediate duty payments.

Unique Customs System:  Italy’s customs system allows buyers to modify or cancel their customs clearing authorizations and use partial clearing, a unique feature in the country.

Regulatory Flexibility:  Each EU country’s customs authority can set its own regulations while following EU quota allocation procedures, allowing for flexible duty payments.

Quota Management:  Buyers can restrict import authorizations to fall within duty-free quotas or choose to pay duties on quantities exceeding these quotas.

Strategic Port Storage:  As of July 1, some Italian buyers left approximately 40% of their imports at ports to avoid prohibitive duties, planning to add these quantities to future imports.

Pro-Rata Allocation:  Importers plan to systematically clear the majority of imports left at ports by the end of the year, with associated costs for transportation and storage, risking material deterioration.