Italian plate producers raise prices

Prices for Italian plate steel are rising, driven by a recovery in domestic demand and attempts by producers to raise prices to restore profitability.

The market is showing signs of increased activity as reported by factories; however, distribution sources indicate that weak activity continues downstream. Given the current environment of low margins and lack of profitability, there is a request for an increase of €30/t ($31.7) for deliveries scheduled for December. One plant plans to raise prices even further for deliveries scheduled for January and February.

Manufacturers indicate a lead time of about two weeks. Major customers do not appear to have resumed purchasing activity, having purchased significant volumes from the import market in recent weeks. Distributors continue to purchase limited quantities from manufacturers' inventories.

One manufacturer reportedly maintains a diverse inventory of products in different grades and sizes, which is especially beneficial in a market where buyers prefer frequent purchases of small quantities.

Manufacturers are now offering S275 internal sheets at €650/t ex-works and S355 at €680-690/t. Current contracts for S275 are valued at €620-630/t, while S355 is €20/t higher. Current booking prices for Asian slabs remain stable month to month, hovering around $520-530/t cfr.

A source at the plant indicates that a significant volume of sheet imports is consistently coming into Europe, with figures just under 200,000 tonnes per month. October and November showed adequate sales figures, although typically characterized by short delivery times and limited quantities.