Italian steel plate prices slightly firmer, but demand limited

Steel heavy plate prices in Italy were slightly stronger in the week to Wednesday January 15, with producers insisting on higher offers in a face of high input costs, despite demand remaining, sources told Fastmarkets.

But the Italian market was still quiet and trading limited.

Italian plate producers were maintaining their offer prices for new rolling at €650 ($667) per tonne ex-works and even higher in some cases.

Buyers, meanwhile, estimated the tradable level at €630-640 per tonne ex-works.

Very few transactions were reported within that range during the assessment week to Wednesday.

One supplier claimed to have sold a minor tonnage at €650 per tonne ex-works, but a producer source told Fastmarkets that sales below €640-650 were not possible due to costs.

Fastmarkets’ weekly price assessment for steel domestic plate, 8-40 mm, exw Southern Europe was €630-650 per tonne on Wednesday, widening up from €630-640 per tonne seven days earlier.

Some suppliers said that a second round of increases, to around €670-680 per tonne ex-works, would be needed because of the current high costs of production – including the cost of steel slab and electricity.

However, buyers were skeptical about any potential price rise.

“There is not enough demand to support [a price rise]. Even €650 [per tonne ex-works] is still hard to get,” a buyer source said.

The Italian market for imported steel plate was also quiet, Fastmarkets understands.

“Import prices are too high. Plus safeguards are currently under review, so there’s a potential risk of stricter measures as of April,” a second buyer said.

“The European market is at a standstill and shipments from Asia are [only likely to] start in end February-early March at the earliest, means arrival in April-May, which would be too risky,” the buyer added.

Steel plate from South Korea and Indonesia, meanwhile, was on offer to Italy at €570-580 per tonne CFR in the week to Wednesday, sources said.

Published by: Julia Bolotova