After increasing in the first half of July amid restocking for September availability, Italian plate demand is now going quiet.
A €30/tonne ($33) increase implemented by producers this month was successful, but values need to be consolidated and some sources believe there is no more space for increases, market sources tell Kallanish.
Mills will close July with good order books despite the slowdown seen in recent days. Producers are quoting end-August delivery for plate with rough edges and September for other grades. Stronger demand continues to be reported for S355 grade compared to S275.
On average, S275 is now hovering at €760-780/t ex-works and at €800-810/t for S355, flat on-week. Before the upcoming August stoppages, mills will hike S275 offers to €800/t ex-works and S355 to some €830-840/t, to prepare buyers for deals to be made in September.
Sentiment on the producing side remains bullish thanks to new infrastructure projects in Italy financed by the EU Recovery Fund. The market continues to feel the lack of supply from Ukrainian producers, present on the market with plate and slab before the war started. Imported slab in Italy is hovering at $610/t cfr on average.
Natalia Capra France