Italian plate producers push up prices
Italian heavy plate prices are on the rise, driven by a resurgence in domestic demand and producers’ price hike attempts in order to restore margins, Kallanish notes.
The market is showing signs of increased activity, as reported by mills; however, distributor sources indicate that weak activity persists downstream. Given the current environment of tight margins and insufficient profitability, there is a request for a €30/tonne ($31.7) increase for deliveries scheduled in December. One mill has plans to raise prices further for deliveries scheduled in January and February.
Producers are indicating a lead time of approximately two weeks. It appears large customers have not resumed their purchasing activities, having acquired substantial quantities from the import market in recent weeks. Distributors are still purchasing limited quantities from producers’ inventories.
One producer is reported to be maintaining a diverse inventory of various grades and measures, which is especially beneficial in a market characterised by buyers who favour frequent purchases of smaller quantities.
Producers are now quoting domestic S275 grade plate at €650/t ex-works and S355 at €680-690/t. Current contracts for S275 grade are priced between €620-630/t, whereas S355 is at €20/t higher. The present booking prices for Asian slab remain stable month-on-month, hovering at around $520-530/t cfr.
A source from a mill indicates that a substantial volume of plate imports is consistently entering Europe, with figures slightly below 200,000 tonnes/month. October and November demonstrated adequate performance in sales, albeit typically characterised by short lead times and limited quantities.
Natalia Capra France
Italian plate prices decline in stagnating market
Italian heavy plate prices are experiencing a downward trend, attributed to reduced domestic demand and competitive, low-cost import offers, Kallanish notes.
The market is quiet, according to mill and distributor sources. Order intake is persistently low. A mill source reports that sales in September and October registered a slight improvement compared to previous months; however, tight margins and inadequate profit continue to pose significant challenges.
Producers are quoting a lead time of about two weeks. Large customers continue to purchase in limited quantities. A small distributor claims he is buying also in small quantities, primarily from producers’ stocks.
According to one source, the EU imported approximately 180,000 tonnes of plate in October. This level has been the monthly average for the past six months. Local demand continues to be met by low-cost imports from Southeast Asia. However, buyers are reporting that Asian suppliers are now raising prices, meaning values of imported and local material are largely the same.
At present, domestic S275 grade plate is priced in the range of €590-610/tonne ($620-641), while S355 is at €620/t ex-works. Producers are asking for €650/t for 355 grade.
Current booking prices for Asian slab are flat on-month at around $520-530/t cfr Italy.
Natalia Capra France