Italian heavy plate prices are steady compared to the beginning of February, following a further increase implemented by local producers due to higher imported slab costs linked to CBAM, Kallanish learns.
Market activity has become quiet over the past days as buyers are adopting a wait-and-see attitude. Mills lead times are extending to mid-March and April, depending on producer.
Italian mills are currently quoting at around €750/tonne ($884.10/t) for S235 plate, with premiums of €30-35/t for S355 and approximately €10/t for S275 material. Grades S235 and S275 usually tend to see similar pricing levels.
Current transaction values for S275 material remain at €720/t ex-works on average and €740-750/t ex-works for S355.
Sellers believe values will continue to increase due to the high CBAM charges for slabs and increasing international values. A producer says it continues to procure slabs from Asia, including China and South Korea, focusing on suppliers with lower carbon footprints.
For material sourced from the least CO2 intensive producers, CBAM costs are estimated at around €40-50/t, while shipments from higher-emission mills could face charges of at least €100/t. Slab values, excluding CBAM costs, are reported at $530/t cfr on average, southern European ports.
Plate prices are expected to rise sharply in the second half of the year, when the revised safeguard mechanism comes into effect and significantly reduces available quotas.
A separate source notes that, out of a total European first-quarter quota of 544,000 tonnes, some 162,000t of imported plate has been cleared through customs between 1 January and 20 February.
