In Italy, domestic prices for thick-sheet steel declined for the second week in a row, although manufacturers expected higher levels of shipments in November due to rising electricity and slab prices, market sources said in the week ending Thursday, September 24. In Northern Europe, the market remained mostly stable, despite the desire of factories to raise prices for November shipments.
In Italy, according to sources, manufacturers sold basic—quality thick-rolled products at 740-750 euros per ton for delivery in October and early November. At the same time, they expected to reach the level of 760-780 euros per ton for delivery in November.
One of the market participants reported that the acceptable level is still 730-750 euros per ton from the plant, but the lower limit of this range has not been confirmed by other buyers. This level corresponded to the previous transactions reported on September 17.
Transactions above 750 euros per ton from the plant were mostly concluded on project orders, the same source noted.
According to the interlocutors, buyers are gradually agreeing with the price increase, as demand remains moderate. At the same time, factories are under pressure due to higher production costs, including higher prices for energy and slabs.
One producer reported that rising energy prices increased production costs by about 20 euros per tonne in the third and fourth quarters compared to June—July.
However, another source in the trading community disagreed with this assessment. "I am not aware of any price increases - on the contrary, the plants are getting very good margins, despite the rise in gas and slab prices," he said on Wednesday.
As a result, Fastmarkets' weekly estimate for 8-40 mm thick sheet steel produced in Southern Europe as of September 24 was 740-750 euros per ton, down 10 euros per ton from 750-760 euros per ton a week earlier.
According to sources, the latest offers for Asian slabs were mainly in the range of 580-590 dollars per ton CIF, while Chinese quotations were approaching 590 dollars per ton CIF against the background of earlier shipping dates in December.
Market participants added that the material with an earlier delivery had already been sold out, so such levels were taken into account in the price. According to market estimates, the delivery time is 8-10 weeks.
There have been several higher offers for slabs from China — at $600 per ton CIF and above, one of the Fastmarkets buyers said, but other sources have not yet confirmed these levels. A lower offer from Southeast Asia to the port of Ravenna was also reported at $575 per ton CIF, but due to the lack of clear details and specifications, it was not taken into account in