European distributors plan to increase the supply of thick-rolled products after increasing the supply of imported slabs in the week up to July 25.
The supply of imported slabs from China and Turkey increased by 10-30 dollars per ton in a week to $520-540/ton CFR Italy. The increase was caused by an increase in steel prices in China (by 3:5)
Market participants hope that they will be able to agree on prices during the next round of purchases of semi-finished steel products at about 510 USD per ton CFR.
Italian distributors are trying to order more slabs for delivery during 2025 to avoid duties under the Carbon Boundary Regulation Mechanism (CBAM), which will take effect in 2026. They are expected to agree to higher slab prices to ensure supply during this year.
CBAM's approach forced the distributors to look for alternative slab sources with a lower CO2 content. Chinese steel manufacturer HBIS has sold about 20,000 tons of environmentally friendly hydrogen-based steel slabs to Italy, with the material due to be shipped by September.
"The prices for thick-rolled products should be at least 610 euros per ton from the factory in order to cover higher costs. the cost of slabs," a source in the manufacturing sector said.
However, prices for rolled steel products in Italy remained stable during the week at the level of 590-610 euros per ton, excluding production. Some sources reported that factories provide discounts, but this information has not been widely confirmed in the market.
"We hope that we will not see a further decline, and the trend will turn positive, which will be facilitated by market prices for the roll, the upcoming CBAM and, as a result, a decrease in demand for imported rolled products. Prices are expected to start rising after the summer period or just before the start of the holidays," the trader said.
It is expected that, in addition to the increase in prices for slabs, the increase in the supply of rolled products[/url]will also contribute to the price increase. the mood of the distributors.
In Germany, prices for rolled steel products in the domestic market increased by 5 euros per ton over the week and amounted to 660-680 euros per ton.
Thick-sheet metal prices in Europe
Per unit[b]Term[/b]Indicative indicatorChangeWeekly rateThe tariff for shipping in North-Western EuropeEURO/tonShipping with shipping6705Germany supplied thick-rolled products (North-Western Europe)Euro/tonCASES68010Italy supplied thick-rolled productseuro/tonItaly
