Italian re-rollers aim for higher heavy plate prices on rising slab costs

Italian re-rollers have been targeting higher domestic prices for heavy plate in the week to Jan. 12 as import slab offers rise.

Offers for the material have been reported at Eur780-800/mt ex-works Italy and one source also reported offers as high as Eur830/mt ex-works Italy.

Deals have been reported at Eur750/mt ex-works Italy and tradable values have been reported at Eur740-750/mt ex-works Italy.

Platts assessed domestic prices for heavy plate in South Europe stable on the week at Eur750/mt ex-works Italy on Jan. 12.

Demand, in the meantime, remained slow after Christmas holidays in the EU.

“Demand is at medium level, bigger customers in general are still on hold to better understand real price and demand movements,” a trader said.

Stockholders are expected to return to the market soon looking for volumes.

The next round of import slab purchases is expected to be settled at higher prices.

Firm offers of slab from China have been heard at $670-$680/mt CIF Italy.

Platts assessed prices for imported slab in South Europe up by $25/mt on the week to $670/mt CIF Italy.

Market sources said that the logistical issues related to geopolitical situation in the Red Sea region and rising freight costs are unlikely to have impact on the slab supply from Asia in the short-run. Some sources, however, believe that the situation might create some delays for deliveries around April.

Author Maria Tanatarmaria.tanatar@spglobal.comRituparna