Jun 22, 2023
European plate buyers start restocking, push for lower prices
2023-07-11
European steel plate buyers have come back to the market to restock and are pushing for lower prices, while the rock bottom level for the market is said to be near, Fastmarkets heard on Wednesday June 21.
Italy
In Italy, apparent demand for plate has picked up during the assessment week, with stockholders looking to restock, sources said.
Bids for commodity grades plate were reported at €710-730 ($775-797) per tonne EXW, while official offers from local re-rollers for July-rolling material were voiced at higher levels – €750-790 per tonne EXW.
One mill source reported sales of sizeable tonnages of commodity grade plate at €730 per tonne EXW during the assessment week.
Another producer reported a transaction at €750 per tonne EXW for S355 grade plate.
“Stockists are very active now, and the prices seem to have arrived at the rock bottom level. Now the question is when the mills will be able to fill order books and lift the prices,” a producer source told Fastmarkets.
As a result, Fastmarkets’ weekly price assessment for steel domestic plate, 8-40mm, exw Southern Europe was €730-750 per tonne on Wednesday, down by €20-40 per tonne from €750-790 per tonne EXW on June 14.
Sources expected plate prices to stabilize shortly and after that local mills were expected to lift their offers before summer closures, Fastmarkets heard.
Also, several sources told Fastmarkets that local plate producers were planning longer-than-usual summer stoppages to balance the market.
“We are going to stop for around three weeks these years in July-August, instead of traditional two weeks,” a second mill source said.
Import offers have also hit rock bottom, sources indicated.
August-shipment plate from Indonesia was on offer to Italy a €650 per tonne CFR, while an Indian supplier was aiming for €700 per tonne CFR for the material with the same shipment.
Northern Europe
Meanwhile, Fastmarkets’ weekly price assessment for steel domestic plate, 8-40mm, exw Northern Europe was €850-870 per tonne on Wednesday, down by €20-30 per tonne from €870-900 per tonne on June 14.
Trading in Northern Europe remained limited this past week, but sources also said that buyers have started to send inquiries for restocking and are testing the market.
One integrated mill in Germany was reportedly out of the market in the week starting June 19. Transactions for limited tonnages from the producers were heard at €850-870 per tonne EXW for July-rolling material at the end of the previous week.
Another integrated mill in Germany, which is traditionally more focused on long-term projects, was not particularly active in spot market, with offers for S355 grade plate from the mill still reported at €1,000 per tonne EXW.
In the meantime, sales of S355 grade plates from Denmark to Germany were reported at €820 per tonne CPT.
Additionally, two sources reported a sale of Spain-origin plate to the Benelux area at €810 per tonne CPT.
A deal for Italy-origin plate to Germany was reported at around €730 per tonne EXW (roughly €800 per tonne CPT), sources said.
In Central Europe, a Czech mill was offering limited tonnages of plate at 760 per tonne EXW.
A Polish integrated mill was not really active in the market during the assessment week, with most recent offer reported at €780 per tonne EXW for July-rolling material.
Published by: Julia Bolotova
Source: Eurometal
