The steel plate market in Italy remains in a state of limbo, with prices broadly stable over the past week amid muted trading activity. Offers for S275 heavy plate are reported at €660-670 per tonne ex-works, while transactions have been occurring at slightly lower prices of €640-650 per tonne ex-works. Order books are short, with late-April lead times still available from local suppliers.
Market participants report cautious buyer behavior, with limited trading and careful booking of quantities. Overseas suppliers of slab, a key feedstock for plate production, have started increasing their offers, with Asian suppliers quoting $520-540 per tonne CIF. However, thicker, plate-quality slab remains difficult to source at these prices.
Italian mills may consider raising prices to reflect higher production costs, but the weak demand and the depreciation of the US dollar against the euro are influencing pricing dynamics. The exchange rate has shifted from $1.04 to €1 a month ago to $1.09 to €1, making euro-denominated prices more competitive.
The market is also adjusting to recent changes in the EU's safeguard measures, including cuts to certain quarterly allocations for heavy plate and a 20% cap per country over the tariff rate quota (TRQ) volume. Import activity remains subdued, with recent deals for May-shipment plate from South Korea to Italy and Spain priced at €570-580 per tonne CFR, and lower offers from Indonesia for June-shipment plate at $605 per tonne CFR (€553 per tonne CFR).
Overall, the market sentiment for April remains mixed, with participants closely monitoring developments in demand, supply, and regulatory changes.
