European heavy plate round-up: European heavy plate prices jump on destabilisations to slab trade flows

European heavy plate prices jumped in the week to 13 March, driven by disruptions to trading flows from the conflict in the Middle East and resultant upward pressure on input slab imports.

McCloskey reported offer price increases of EUR30-50/t from European re-rollers earlier this week, back in the market after withdrawing previous offers in response to rising freight and energy costs.

Heavy plate prices in Northwest Europe were heard at around EUR800/t ex-works for s235jr grade, or around EUR850/t delivered for s355 material.

In the re-roller dominant Italian market, market participants reported trading between EUR750-770/t ex-works against offers as high as EUR800/t ex-works, though mill sources said a significant portion of the market continue to hold back from proactively offering, preferring to settle prices in direct negotiation with interested buyers or refrain from trading entirely until the geopolitical outlook is more clear.

“Plate prices are higher due to costs,” said a re-roller source. “Energy, logistics, slabs – customers couldn’t deny some increases.”

Chinese exporters are keeping slab offers at high prices as traders step up their inquiries to fill the gaps from Iranian supply, though the steep levels are deterring many buyers from committing on deals.

Slab import offers to the EU were reported at $550-580/t CIF from Asian exporters, and these imports will themselves be subject to further costs from CBAM, compounding pressures. Volume availability is also a concern for importers due to limited supplies of June shipment slab from Asia.

Fortunately for buyers, inventories are sufficient to constrain significant panic buying at present, though distributors remain uncertain as to potential developments moving forward.

“Customers aren’t buying, the picture is not clear,” said an Italian distributor. “Most customers purchased before the conflict so pressure to buy isn’t so high, especially as consumption isn’t increasing.”