The prices of rolled steel in Italy continue to rise due to the increase in the cost of imported slabs associated with CBAM, according to Kallanish.
Market activity has been relatively calm since the Christmas holidays, although factories are reporting satisfactory orders. Delivery dates have extended until March, while import offers are reportedly virtually non-existent or not much lower than domestic prices.
Manufacturers are also planning further price increases this month, as the cost of CBAM slabs remains particularly uncertain. According to one of the sources, there is a possibility that prices for rolled steel may rise to the level of 800 euros per ton (951.21 US dollars per ton) as early as February. "The market needs to get used to higher prices as protectionist measures come into effect. CBAM will become another form of anti-dumping measures," a source at the plant comments.
Factories continue to purchase slabs from their traditional Asian suppliers. The cost of slabs, excluding the cost of CBAM, is about $520 per ton in the ports of Southern Europe cfr
.However, prices are expected to rise significantly once CBAM fees are factored in, which sources say are currently difficult to quantify but are expected to be significant.
One of the buyers of the slabs claims that he is actively cooperating with his suppliers to facilitate the certification of their direct emissions and is confident that with the assistance of European experts, the certification process will go smoothly and costs will be minimal. However, currently the costs of CBAM seem extremely high when considering the default values.
Italian factories currently offer about 750 euros/ton per S235 sheet, with premiums of 30-35 euros/ton per S355 sheet and about 10-15 euros/ton per S275 sheet. This means an increase in prices from about 700 euros per ton before the holiday period. The current contract prices for S325 material, before the price increase, remain at an average of 710-720 euros per ton after completion of work.
One distributor says that he is currently receiving good volumes of orders for sheet metal products, but warns that demand may decrease if prices reach 800 euros per ton, as downstream customers may reduce production volumes.
Meanwhile, the dynamics of plate prices in the northern and southern parts of the Alps is changing: prices in Italy are rising, while the market in northwestern Europe is not gaining momentum yet.
Consequently, prices on both sides of the Alps are currently the same, so it makes no sense for buyers from Austria or southern Germany to order Italian materials.
Considering that Italian factories
