Italian heavy plate contract prices have continued to rise, with lead times extending further with demand strengthening during November and into December while import offers have largely disappeared from the market.
Two mill sources tell Kallanish that the previously estimated €50/tonne ($58.11/t) increase would likely be insufficient to cover the additional slab import costs generated by the Carbon Border Adjustment Mechanism.
Plate order intake is described as healthy, with lead times now stretching into January. Mills are currently asking €670/t for basic S275 plate, with a €35/t premium applied to S355 material. Contract prices for S275 are reported around €650/t ex-works. One source confirms that the €670/t level has been achieved, although only for small volumes, and is expected to consolidate in the coming weeks.
Mills are expected to push prices higher again in January. Producers initially asked €700/t ex-works for S275, but they are now recalculating their future offers in light of CBAM related slab costs, with further upward adjustments likely.
Imported slab into Italy is currently assessed at $510-520/t cfr, market participants note.
CBAM, the proposed melt-and-pour rule and new safeguard measures continue to create substantial market confusion.
Natalia Capra France
