European heavy plate round-up: European plate offers to rise to cover higher slab costs

European re-rollers plan to increase offers for heavy plate following a rise in import slab offers in the week to 25 July.

Import slab offers from China and Turkey have moved up by $10-30/t over the week to $520-540/t CFR Italy. The rise was driven by higher steel prices in China.

Market participants hope that they would be able to negotiate prices during the next round of the semi-finished steel purchases at around $510/t CFR.

Italian re-rollers have been trying to book more slab with delivery within 2025 to avoid carbon border adjustment mechanism (CBAM) duties which will come into force in 2026. They are expected to accept higher slab prices to secure delivery within this year.

The approach of CBAM made re-rollers look for alternative sources of slab which would have lower CO2 content. Chinese steelmaker HBIS has sold around 20,000 t of hydrogen-based green steel slab to Italy, with the material to be shipped before September.

“Heavy plate prices need to be at least EUR610/t ex-works to cover higher slab costs,” a producer source said.

Heavy plate prices in Italy, however, remained stable over the week at EUR590-610/t ex-works. Some sources said that mills have been giving discounts, but the information was not widely confirmed in the market.

“Hopefully we will not see further decreases and the trend will turn positive supported by coil market prices, upcoming CBAM and consequent decrease in import plate demand. The prices are expected to start moving up after summer time or immediately before the start of holidays,” a trader said.

Apart from higher slab prices, an increase of offers for coil products is also expected to contribute to the bullish mood of re-rollers.

In Germany, domestic heavy plate prices inched up by EUR5/t on week to EUR660-680/t ex-works.

European heavy plate prices

Benjamin Steven Journalist, Steel
Maria Tanatar Associate Director, Steel and Green Steel

opisnet.com