Posted on 14 Feb 2019
As plate prices remain soft in north-western Europe, offers from other regions have little attraction for buyers. Looking forward however, the curves of rising domestic prices and lowering import offers may cross at some point.
For slab rolled in Italy, prices have just recovered by up to €30/tonne ($34/t) (see separate article) in line with input slab costs from eastern Europe. “After all, Italian re-rollers are the ones that make the price in Europe,” one German industry observer remarks. But higher-priced slab from the East will not mean much better business in Italy. “I hear they have lots of free capacity, and demand is low,” he tells Kallanish.
When the bottom for eastern European slab was reached at some $400/t fob in late January, Italian re-rollers priced their plate at €520-530/t ex-works. For north-western European buyers, buying Italian depends on the source location in Italy. According to the German, transport to Austria costs €25-30/t, and to the Ruhr more like €50-60/t.
With domestic prices from integrated northern mills sometimes undercutting €600/t delivered, Italy was not much of an option for German buyers north of the Danube. The latest price hikes for slab and Italian plate will, unlike the historic army commander Hannibal, have trouble crossing the Alps, albeit in the opposite direction.
Asian imports are equally of little interest due to the unfavourable $/€ exchange rate. “Also, five months waiting is too shaky for most,” the source says, but then notes that the uncertain economy in China could release more tonnage into the international market. “Shipyards here have already had offers with moderate lead times,” he reveals.
