Local steel heavy plate prices in Italy declined week on week amid increasing competition among suppliers and weak demand, sources told Fastmarkets on Thursday May 28. Meanwhile, German plate prices remained largely stable, with no fresh trading activity heard in the market during the week.
Southern Europe
Latest deal levels for steel plate in Italy were heard at €730-750 ($851-874) per tonne ex-works, down from €740-775 per tonne ex-works a week earlier, with sources saying that “competition is increasing for July-August delivery.”
Offers were reported in the range of €740-760 per tonne ex-works, with one producer saying that starting offers for the latest deals were at €750-760 per tonne ex-works, but were “less and less achievable even for smaller tonnages in pure commodity specs.”
Demand in the market had been weak throughout May, with sources linking this to fewer working days, resulting in lower output.
“For the time being, there are still sufficient quantities in local ‘port-stocks’ at somewhat reasonable prices available,” a trader said on May 24.
A second trader indicated S275-grade plate at €740-750 per tonne ex-works for end-June to early-July production.
Meanwhile in Italy, S355-grade material was offered at €770-800 per tonne ex-works, depending on order volumes, the trader said. A re-roller currently facing production issues was reported to be offering €790-800 per tonne ex-works for the same grade, but S355 is not included in Fastmarkets’ methodology.
Earlier in May, a major steel plate re-roller in northern Italy was reported to have paused production at one of its rolling mills, with plans to restart in early June.
A source at the producer said on May 27 that the rolling mill was undergoing maintenance and should restart in mid-June but added that overall plate production has not stopped.
Fastmarkets contacted the re-roller for an official statement but had not received a response by the time of publication.
Fastmarkets’ weekly price assessment for steel domestic plate 8-40mm, exw Southern Europe, was €730-755 per tonne on Thursday, widening downward from €740-775 a week earlier.
Offers for plate imports into Italy were heard at €740-750 per tonne DDP, including CBAM costs, but were described as not “very attractive” in the market.
However, one producer source said imported S275-grade plate from Indonesia was booked at €780 per tonne DDP Spain, not below this level, although one trader doubted this information.
“I strongly doubt that any trader will take the risk of the high default values,” the trader said.
These prices were not included in Fastmarkets’ assessment since they are based on DDP, rather than CFR levels.
Plate offers from India into Europe were heard at €690-700 per tonne CFR for May shipment, but sources were unsure about the delivery destination and noted limited recent activity in the market.
Fastmarkets’ weekly price assessment for steel plate (8-40mm), import, cfr main port Southern Europe, was €700-750 per tonne on Thursday, unchanged from April 16.
Germany
Offers for domestic plate in Germany were heard in the range of €790-850 per tonne ex-works during the week.
Some market sources reported lower levels at €790 per tonne ex-works, but Fastmarkets considered this information to have low confidence compared with other data and prevailing market conditions.
“The German market is completely dead, so I cannot confirm any orders being booked,” one trader source said on Thursday, but noted that German mills were “not booking below €800 per tonne ex-works… these days.”
Other offers were heard at €830-850 per tonne ex-works, while indications reached €840-880 per tonne ex-works, although these were linked to a supplier that is not typically active in the spot market.
The trader added that no new offers have been heard from other suppliers, owing to bank holidays and fewer working days in May.
“Therefore, I think we have to wait to see a bigger restocking, which so far does not take place, to judge the real price level,” they added.
Offers for Italian-origin plate in the region remained higher at €850-880 per tonne delivered, a second trader source said, reflecting more favorable price conditions for local German mills.
Fastmarkets’ weekly price assessment for steel domestic plate 8-40mm, exw Northern Europe, was €800-850 per tonne on Thursday, unchanged week on week.
The plate import offer from India at €690-700 per tonne CFR was also considered for Northern Europe, although the exact delivery destination remained unclear.
“Due to shipment problems arising in the Middle East and upcoming summer holidays in the EU, presently, [there is] not much interest in [plate] imports into Northern Europe,” a trader source said on May 24.
Fastmarkets’ weekly price assessment for steel plate (8-40mm), import, cfr main port Northern Europe, was €700-750 per tonne on Thursday, unchanged from April 16.
