Contract prices for rolled steel products in Italy continue to rise and delivery times increase as demand increases in November and December, while import offers have largely disappeared from the market.
Two sources at the plants told Kallanish that the previously estimated increase of 50 euros per tonne (58.11 US dollars per tonne) would probably not be enough to cover the additional costs of importing slabs caused by the carbon boundary adjustment mechanism.
The number of orders for the plates is growing, and the deadline for their completion has stretched until January. Currently, factories are asking for 670 euros per ton of S275 base plate, and an additional fee of 35 euros per ton is charged for S355 material. Contract prices for the S275 are reported to be around 650 euros per tonne from the factory. One source confirms that the level of 670 euros per ton has been reached, although only for small volumes, and it is expected to strengthen in the coming weeks.
Factories are expected to raise prices again in January. Initially, manufacturers asked for 700 euros per ton of S275 slabs, but now they are recalculating their future proposals in the light of the cost of CBAM-related slabs, with the possibility of further upward adjustments.
The import of slabs to Italy is currently estimated at USD 510-520 per ton cfr, market participants say.
CBAM, the proposed melting and casting rule and new protective measures continue to create significant confusion in the market.
Natalia Capra France
Kallanish.com
