European heavy plate prices softened in the week to 6 June due to limited demand and lower import slab costs.
Distributors have been avoiding restocking due to both subdued end-user demand and bearish sentiment in the market. Plate demand from projects, in the meantime, has remained healthy, but the volumes are smaller compared to distribution and orders were mainly made for longer lead times.
“Plate prices are under pressure from low demand from distribution, but projects are doing just fine,” a German distributor said.
McCloskey’s weekly marker for domestic heavy plate prices (s275jr) in Italy dropped by €15/t on the week to €615/t ex-works.
Italian re-rollers have been selling heavy plate at €600-630/t ex-works Italy.
The decline of import slab prices allowed the Italian re-rollers to give discounts.
“Slab from Asia moved down allowing the re-rollers to accept lower prices for heavy plate,” a mill source said.
Prices for slab from Asia have been reported at $490/t CFR, down by $10/t on the week.
In Germany, domestic prices have also declined over the week due to lack of demand and competition amongst the European mills.
McCloskey’s weekly marker for domestic heavy plate (s235jr) prices in Northwest Europe decreased by €5/t on the week to €665/t ex-works.
German mills have been offering the material at €650-700/t ex-works. The mills offering at the higher end of the range continued to avoid sales of commodity grades plate in the spot market as they have long-term agreements and deals with projects.
A Northwest European re-roller has been offering s355jr-grade heavy plate to Germany at 690/t delivered.
A Czech Republic-based mill has been offering s235jr plate at €640-650/t ex-works. The price was achievable only in Central Europe or in the east of Germany due to transportation costs. The Czech steelmaker was reported to be struggling to fill its order books due to competition with Huta Czestochowa in Poland which has been aiming to increase production from current levels of 30,000 t per month.
Domestic heavy plate supply is expected to further increase after Liberty Galatin in Romania resumed production.
The negative pressure on European mills from overseas offers has decreased, with only some deals reported in Northwest Europe and Spain. Buyers have not been interested in imports due to long lead times and uncompetitive prices.
In Italy, import offers from Asia have been heard at €600/t CFR, while prices in Spain and Northwest Europe have been higher at around €630-640/t CFR.
Maria Tanatar / Benjamin Steven
