Domestic steel heavy plate prices decreased in Italy in the week to Thursday June 4, reflecting weak demand for summer deliveries, while prices in Northern Europe remained stable amid slow trading, Fastmarkets was told.
Italy
Deals for steel heavy plate in Italy were reported in the range of €730-750 ($849-873) per tonne ex-works on June 4, unchanged from bookings heard a week earlier.
Market sources said that offers were at heard €730-760 per tonne, slightly lower than previous pffers at €740-760 per tonne ex-works, with the lower end reflecting competition for commodity-grade volumes.
“Demand is limited. There is no rush on the distributors’ side to book for July and August delivery. Their sales from stocks are also limited,” a producer said on Thursday, adding that other suppliers “compete a lot on all levels.”
“I do not see a sudden resolution for July-August, we’ll most probably be conditioned by the demand, and no price strength is in sight,” the producer added.
A trader source also noted that trading was still subdued, and insufficient to fill mills’ summer order books, “leading market participants to expect extended maintenance shutdowns during July and August.”
Fastmarkets’ weekly price assessment for steel domestic plate 8-40mm, exw Southern Europe, was €730-750 per tonne on Thursday, narrowing downward from €730-755 pert tonne a week earlier.
Northern Europe
Offers of heavy plate in Germany were heard in the range of €800-850 per tonne ex-works. The lower end around €800-820 per tonne ex-works was linked to material delivered to Belgium, Italy and France, a producer said.
Indications were reported within the range of €830-850 per tonne ex-works, but no significant trading was heard during the week.
The producer said that some deals for German plate at €790-800 per tonne ex-works had been concluded, also for deliveries to Belgium, Italy and France, but some of these destinations fall outside the Northern Europe assessment scope.
“We did not see any competing offers from German mills. These are the prices confirmed from Italy, Belgium and France by re-rollers,” the producer said on Thursday. “I would not exclude that Germans prices [are] higher but they are not really visible in [the] daily spot commodity market.”
A distributor said that the cost of freight from Italy to Germany was quite high, making Italian plate less competitive in Northern Europe. “You can get cheaper plate in Germany, Denmark and Belgium,” the source said.
The distributor added that prices were mostly stable, but mills were “not so satisfied” with booked volumes and were expecting more orders. “Order books are low, especially in Germany, because stockholders are not buying much because of the [seasonal lull in] summer,” the source said.
Meanwhile, a trader noted that demand in Germany remained weak, partly due to delays to wind-energy projects. “While the defense sector continues to generate solid demand, competition for these volumes is intense and has not been sufficient to alter the overall market trend,” the source added.
Fastmarkets’ weekly price assessment for steel domestic plate 8-40mm, exw Northern Europe, was €800-850 per tonne on Thursday, unchanged week on week.
