European heavy plate round-up: EU plate stable as CBAM costs suggest price floors

Activity in the European heavy plate market has been limited in the week to 8 May, but this has not resulted in any significant change in prices. 

“Demand for plate in on the lower side, but the market is not completely dead and some volumes are traded,” an Italian buyer said.

Italian re-rollers have been settling deals for s235jr/s275jr grade plate at around EUR750/t ex-works for big tonnages and at EUR760-780/t ex-works for smaller lots.

Despite a lack of support from demand, plate prices are unlikely to slide due to high costs for steelmakers, particularly re-rollers.

European re-rollers traditionally rely on imported semi-finished products and after taking into account Carbon Border Adjustment Mechanism (CBAM) duties, they have little room for discounts.

Slab offers have been heard at $600-610/t CIF for material from China. The next round of purchases is expected to be settled at around $600/t CIF.

Re-rollers must take CBAM duties into account, which they estimate to be around EUR50-80/t. However, until exporters secure the required verification, which will take place in 2027 for imports custom cleared in 2026, European importers face the risk that duties will be calculated using default values, potentially leading to significantly higher costs.

Domestic prices were supported by reduced capacities, as two Italian re-rollers – Metinvest and Marcegaglia – had production stoppages at their rolling mills.

In Germany, domestic s235jr plate prices have been reported at EUR800-850/t ex-works.

Author: Benjamin Steven & Maria Tanatar

opisnet.com