The European rolled metal market is holding up as CBAM is concerned about cloud import activity; slabs are falling with small orders
Prices for European plates remained mostly stable in the week ending December 12, with market participants reporting minimal changes in import volumes and only a slight increase in prices on the domestic market.
The sources described a market that is active on paper but is slowly turning into firm orders as buyers shift their focus to covering year-end costs and the effects of the upcoming default values of the carbon emissions adjustment mechanism.
The offers for imported plates have remained unchanged for the second week in a row. Suppliers' prices for raw materials of the base grades S235/S275 range from 630 to 640 euros per ton in Spain and from 660 to 670 euros per ton in Italy and Germany. Traders said that while these levels are acceptable, actual demand is limited by uncertainty about CBAM-related costs for 2025.
Domestic prices in Southern Europe continued to be in line with supply discussions in February, with the market value of the S275 reported to be 650-670 euros per tonne from the factory. In Northern Europe, service centers indicated an acceptable price level of around 700 euros per ton in the Ruhr, although they noted that most of the January capacity had already been deployed, which limited on-site sales negotiations.
Market sources have repeatedly pointed out that CBAM is a key factor preventing the purchase of both rolled products and slabs. Several buyers stated that the standard emission values entail additional costs of 140-600 euros per ton, which makes importing large volumes uncompetitive if suppliers do not provide confirmed emission data. One European factory described the situation as "a mess with the supply of rolled products," adding that next year the effectiveness of imports will depend entirely on verification, not on price.
Slab prices did not change week after week, with the market value of the slab being $500 per ton in Italy, and offers from Asian producers being $520 per ton in Italy. Transaction volumes were minimal, as both factories and buyers expected clarity on documentation requirements in the first quarter. The service center reported a similar level of 500-510 dollars per ton in Italy, noting that interest in slabs "is limited only to the necessary replenishment of stocks."
Participants in the entire supply chain emphasized that most buyers had already been secured for January and part of February, which led to a more peaceful end to the year. One trader estimated that "only large cargoes with a tonnage of less than 500 tons are being moved," and large buyers are delaying decision-making until