European heavy plate round-up: Italian plate prices down further, re-rollers squeezed by CBAM

Italian heavy plate prices declined in the week to 29 May as the impact of weak demand offset the effects of high slab costs.

In Italy, deals for S235JR/S275JR-grade heavy plate have been settled at EUR730-750/t ex-works. The number of transactions has not been high enough to secure order books for summer, and market participants anticipate longer maintenance shutdowns in July-August.

Several sources noted that prices of EUR730/t ex-works are already at breakeven with production costs, taking into account the latest transactions for imported slab settled at $590-600/t CIF Italy.

Some Chinese steelmakers have pushed slab offers to $630/t CIF Italy this week, citing rising raw material costs. The new prices were not accepted by EU buyers.

The introduction of the Carbon Border Adjustment Mechanism (CBAM) adds costs and risks for European re-rollers that traditionally rely on imported semi-finished material. Market sources estimated CBAM duties for Asia-origin slab at EUR50-80/t. However, until exporters secure the required verification — which will take place in 2027 for imports customs-cleared in 2026 — European importers face the risk that duties will be calculated using default values, potentially leading to significantly higher costs.

In Germany, demand also remained muted, with sources citing delays to some wind power projects, which did not improve sentiment. German mills, however, remained firm in their prices, offering heavy plate at EUR820-850/t ex-works.

While the defence industry has been showing healthy demand for heavy plate, competition for these sales has been strong, and the volumes have not been sufficient to change the market trend.