Italian heavy plate producers are increasing prices by €30/tonne ($32) compared to last month for S275 and S355 grades. Sources tell Kallanish the market is quiet due to the sector’s August hiatus.
Local re-rollers are requesting €700/t ex-works for S275 grade and approximately €730-740/t for S355. Last month, they made significant efforts to lower their prices, resulting in import offers no longer being competitive.
According to a mill source, prices have hit rock bottom and are expected to rise in upcoming contracts. Given the current cost of production and imported slab values, it is evident that July contract prices are not sustainable for producers, as they are operating with minimal profit margins. Certain producers are starting to reject selling at the low levels seen in July.
During July, customers of all sizes showed a reluctance to make purchases, and sales volumes have been consistent but low. Various buyers took advantage of competitive import prices in June, resulting in a decline in local sales volumes. Last month, the cost of Asia-origin material was at around €600-620/t cfr Italy.
According to information from distributors, there is a continued stagnation in demand downstream. The current booking price for Asian slab is at approximately $550/t cfr Italy. However, for larger volumes, there are discussions about a slightly lower price of $540/t cfr. As of now, domestic S275 grade transactions are taking place at approximately €650-660/t ex-works in Italy. S355 is meanwhile being traded at around €680/t, sources suggest.
Natalia Capra France
