European heavy plate round-up: Italian plate prices soften on relaxing cost pressures

European heavy plate prices remained stable in Germany and moved slightly lower in Italy in the week to 15 May due to slow demand. 

In Germany, steelmakers have limited volumes to sell in the spot market and are focussing on long-term contracts and projects instead. As a result, they remain less exposed to demand hurdles and are not competing for volumes with European re-rollers in the commodity grade plate segment.

German steelmakers have remained firm in their s235jr heavy plate prices, asking for EUR820-830/t ex-works.

In Italy, a softening of slab prices, combined with lack of demand recovery, resulted in some heavy plate price decreases. Large volumes have been traded at EUR740-750/t ex-works, and smaller lots have been sold at EUR750-770/t ex-works.

Although 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, the lower slab prices encouraged buyers to push for lower prices, some sources said.

Slab offers have been heard at $600-610/t CIF Italy for material from Asia, and buyers estimated a workable price range at $590-600/t CIF Italy.

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 custom cleared in 2026, European importers face the risk that duties will be calculated using default values, potentially leading to significantly higher costs.

Author: Benjamin Steven and Maria Tanatar

opisnet.com