Italian heavy plate prices are experiencing a continued decline, driven by weak order books and unfavourable sentiment reported across the value chain, Kallanish notes.
The current market weakness reflects a broader context, characterised by diminished demand and a downturn affecting all flat products across Europe. The recent adjustment of the European Commission’s safeguard measures has resulted in a notable decrease in plate imports, enhancing the protection of the domestic market. Current import prices are aligned with domestic material.
Two mill sources indicate that the market is currently facing stagnation, due to a decline in confidence and the ongoing negative sentiment from the uncertain geopolitical landscape. Currently, monthly turnover is accomplished without any visibility. Despite certain end-users making purchases, the distribution sector is experiencing margin pressures and is predominantly carrying out back-to-back buying transactions.
One source, however, claims that the first half of the year was “moderately positive” with the company maintaining limited profitability. The second half presents uncertainty.
The disparity between the cost of slabs, at $500/tonne cfr Italy on average, and the selling prices of plates results in no profit margin for producers.
The source says his mill is currently operating at maximum capacity. The current lead time offered by most plate manufacturers is approximately two to three weeks.
No significant improvement is anticipated in July and August; however, the potential for a market recovery may materialise in the fourth quarter.
CBAM is expected to have a favourable impact across a wide Europe-made range of products. The details surrounding the regulation, set to be implemented in January 2026, remain ambiguous and unclear. In the face of uncertainty, consumers are likely to delay or hold off purchases from the import market from September on.
Recent transactions for S275 plate indicate a €20-25/t ($23-28/t) average decline compared to last month, hovering at €600-610/t ex-works. S355 is currently being traded at €640-650/t delivered, or €620-630/t ex-works, according to market sources.
Natalia Capra France
