Italian heavy plate prices continue to rise, driven by higher imported slab costs linked to CBAM, Kallanish learns.
Market activity has been relatively quiet following the Christmas break, although mills report satisfactory order intakes. Lead-times have now extended into March, while import offers are said to be largely absent or not much below domestic prices.
Producers are also implementing further price increases this month, as CBAM slab costs remain particularly uncertain. One source says there is a possibility that plate prices could move to the €800/tonne ($951.21/t) level as early as February. “The market has to become accustomed to higher prices as protectionist costs take effect. CBAM will be another form of anti-dumping,” a mill source comments.
Mills are continuing to source slabs from their traditional Asian suppliers. Slab values, excluding CBAM costs, are reported at around $520/t cfr southern European ports.
However, prices are expected to rise significantly once CBAM charges are factored in, which sources say are currently difficult to quantify but are expected to be significant.
One slab buyer states that he has been actively working with his suppliers to support the certification of their direct emissions and is confident that, with the assistance of European experts, the certification process will proceed smoothly and costs will be contained. At present, however, CBAM costs appear extremely high when considering default values.
Italian mills are currently quoting around €750/t for S235 plate, with premiums of €30–35/t for S355 and approximately €10–15/t for S275. This represents an increase from around €700/t before to the holiday period. Current contract values before the increases for S325 material remain at €710-720/t ex-works on average.
One distributor says he is currently receiving good volumes of plate orders, but warns that demand could soften if prices reach €800/t, as downstream buyers may reduce tonnages.
Meanwhile, plate price dynamics are diverging between north and south of the Alps, with Italian values rising, while the northwest European market is not yet gaining pace.
Consequently, prices either side of the Alps are equal at present, so ordering Italian material makes little sense for buyers in Austria or southern Germany.
Given that Italian mills have little to no European slab base, they need to follow prices for slab imports, which have risen notably along with the full implementation of the CBAM. Hence, southern prices for S355 plate have reached €730/t in a short time. In northwestern Europe, that has been the desired mark for some two months now, amid limited movement and deals often closing at lower levels (see Kallanish 14 January).
Author: Natalia Capra France
