In the week to October 31, an optimistic mood prevailed in the European rolled products market, which was facilitated by a recovery in prices for rolled products and a decrease in interest in imported goods due to the upcoming introduction of the carbon dioxide emissions control mechanism (CBAM) and the expected tightening of quotas.
Plate buyers are showing increased interest in domestic materials, as new regulations coming into force next year will both limit availability and raise prices.
European distributors, which traditionally use imported slabs, need to raise prices to cover CBAM's costs for semi-finished products arriving next year. Although the EU authorities have not yet published a complete guide on these measures, market participants estimate that CBAM duties will amount to about 50 euros per ton of slab.
"With a slab price of 650 euros per ton at the manufacturing plant[in Italy], the rollersmen can safely import slabs from Asia and cover CBAM costs of about 40-50 euros per ton," said one of the rollersmen.
Imported slabs from Asia were offered at about $520 per ton compared to Italian prices, and prices were reported to be close to $500 per ton compared to Italian prices.
In Italy, deals were reported for the supply of thick-rolled products at a price of 620-650 euros per ton from the plant. The material was offered at a price of 650 euros per ton in stock, and market participants expect that new deals will be concluded at about this level.
However, some market sources claim that although end users and projects mostly agreed with the price increase, distributors resisted the increase.
The 19th round of sanctions against Russia adopted by the EU last week includes measures against Evraz PLC, a British company with headquarters and major assets in steel production and mining in Russia. Some market participants expect that this will lead to a reduction in the supply of cheaper slabs exported by Evraz to some European processing plants, including those located in the Czech Republic and France, which will lead to a slight increase in prices for rolled products. Others, however, claim that the sanctions are aimed only at the British company and that exports will continue.
German plants offered thick—rolled products at a price of 700-730 euros per ton from the factory, and an integrated plant in Northwestern Europe could still offer some volumes at a price of 670 euros per ton from the factory.
The Czech supplier expects a higher price of 700 euros per ton from the factory, which is about 40-50 euros per ton higher than in recent transactions.
Weekly European sales of thick-rolled products,
