European sheet metal prices continue to decline amid low spot activity and pressure on mills
Thick-sheet metal prices in Europe declined again in the week to June 13, as factories showed increasing flexibility to fill production niches in July and early August amid declining spot demand.
The downward trend continued despite the absence of significant competition from imports, which
The cost of sale in the Italian domestic market, according to numerous reports, was 600-620 euros per ton from the factory, and distributors received supplies at a price of 620-650 euros per ton, depending on location and specification. Market participants pointed to weak demand and indecisive buyers, as most of them were waiting for clearer signs of lower prices before moving on to new volumes.
"We are currently in the lowest phase of the market — buyers use import prices as a guideline, but they do not dare to act within the country, expecting a decrease," a source at the plant said.
Import offers to Italy from Asia for raw materials of the S275 brand ranged from 590 to 600 euros per ton of CIF, but these volumes did not arouse new interest, since local prices were already close.
"Imports are not attractive enough to disrupt, and due to the uncertainty of cargo transportation and quotas, people prefer to choose domestic options when the price difference is minimal," the trader noted.
As for slabs, the supply of high-quality slabs to Italy is mainly from China, India, and Russia. Slabs for roll production could reportedly be purchased for prices starting at US$470 per ton outside Indonesia, although buyers emphasized that the price difference was due to differences in slab sizes and their final use.
Market participants stated that the level of psychological support for the prices of rolled products currently stands at about 600 euros per ton, and the plants are focused on maintaining production volumes rather than price stability.
Platts estimated the production of thick-rolled products in Southern Europe at 615 euros per ton at the Italian plant, which is 5 euros lower than in a week, and in Northern Europe at 680 euros per ton at the Ruhr plant, which is stable during the week.
Platts The estimated cost of a slab in Italy is $495 per ton CIF, which has been stable for a week. Platts is part of S&P Global Commodity Insights.
Devbrat Sakha
spglobal.com