Italian heavy plate consumption is showing a modest improvement, with reports from two mill sources indicating an increase in order intake. Orders are still being executed for relatively small volumes, and lead times remain short in February. Import sales are limited due to elevated, uncompetitive pricing. Large buyers are expected to maintain their global purchasing strategies despite potential EU duties. In contrast, mid-sized buyers are showing reluctance to source material from the Far East due to the looming CBAM regulation and risk of retroactive duties.
The EU is assessing the application of 15% quarterly safeguard quotas for each country of origin. Despite the decrease in import transactions, European overcapacity and slow economic growth continue to be significant concerns. S275 grade transactions are occurring within the range of €630-640 per tonne ex-works, or €650-655 per tonne delivered, relatively stable week-on-week, while S355 is trading at a premium of €20 per tonne above that. The current asking price from mills is set at €650-660 per tonne ex-works for S275, while S355 is priced at €680 per tonne.
Although the two mill sources indicate a gradual improvement in demand, a distributor reports that activity remains average. Depending on the product, they are working at 30% to 40% less than last year across all long and flat products. The year 2024 was unremarkable; while they avoided losses, their earnings were also disappointing. Margins declined last year, and the performance in 2025 has been underwhelming so far. Considering current processing costs and imported slab prices at $530-540 per tonne cfr Italy, one mill has indicated it will continue to implement gradual price increases.
