The EU’s current quarterly tariff-rate quota for “other countries” plate exceeds 582,500 tonnes. However, just as with the EU’s hot rolled coil anti-dumping probe, launched in August, any potential plate duty could be applied retroactively. “This has already made some traders stay clear of ordering,” one observer says. He believes the announcement of the investigation will encourage EU mills to raise their prices. South Korea and India have been named as two origins potentially to be investigated.
According to other observers, though, this is not yet the case. Prices are still softening in Scandinavia, Kallanish hears from a northern European source. A German buyer says he cannot see any move in pricing at present. He adds that one German plate mill has now introduced short working hours and reduced output, in order to stabilise prices and limit oversupply.
That mill is still offering S235 plate at €730/tonne ($814) delivered Ruhr, a price kept stable since last month. A Ruhr-based mill is quoting the same price but for S355, according to the observer. According to other sources, this would be the low end, with €760/t delivered for S355 charged in other regions.
One mill source confirms it is too soon for mills to strengthen their prices on the basis of a potential EU investigation. All players are facing very low demand, with only occasional inquiries for refilling inventories. “Let us wait another 2-3 weeks, then we might see clearer where prices will go,” he says.
Christian Koehl Germany
