Italian heavy plate prices are increasing compared to January, following a further increase implemented by regional producers driven by higher imported slab costs linked to CBAM, Kallanish learns.
Market activity remains quiet as buyers are now adopting a wait-and-see attitude, but mills say they have enough orders until the end of March.
Italian mills are currently quoting at around €750/tonne ($888.33/t) for S235 plate, with premiums of €30-35/t for S355 and approximately €10-15/t for S275 material.
Current transaction values for S275 material are now increasing to €735-750/t delivered on average and €765-780/t delivered for S355.
Sellers believe values will continue to increase in the coming days as buyers are seen coming back to purchasing after a quiet January.
Slab values, excluding CBAM costs, are reported at around $530/t cfr southern European ports. Mill sources say they are considering CBAM charges of more than €100/t.
Meanwhile, Northwestern European plate mills have increased offer prices by around €30/t in January, amid a prevailing lull in demand. This has lagged the stronger upward price movement seen in Italy.
Current offer prices for S355 plate appear in a wide range of €730-770/t ex-works, according to distributor sources.
One manager bemoans that his selling prices are not much higher than that, at €760-790/t, albeit the material was bought at still somewhat lower mill prices in previous months.
According to one Ruhr-based observer, Italian S355 offers to northern markets “do not start with a 7 anymore”, meaning they would be at or above €800/t delivered Ruhr, and absolutely not competitive against local offers (see Kallanish 2 February).
