Cheap imports of hot rolled flat steel from China replace plates from Europe

Slab sales in Europe have suffered recently due to aggressive offers of hot-rolled plates from China. Some of the Italian flat products manufacturers have already stopped buying plates in Europe and are buying HRP from China as the price is almost the same.

Slabs can now be purchased for around USD 540 - USD 550 per ton CFR FO. First class slabs from Chinese factories can be purchased for no more than US $ 570 per ton CFR FO. Obviously, plates in the range of 10 mm to 40 mm are purchased for re-rolling (range usually without additional size). And then they integrate their stock in the production of plates with a thinner thickness, for which some additional dimensions can be obtained.

Moreover, recent reports of price increases are unfounded. The real situation is that the price remains quite low (450-460 Euro per tonne) and extremely volatile and is mainly determined by the buyer's ability to pay. If the buyer is a financially strong company that can give real guarantees of payment, then it is able to dictate the price.

The price across Europe has remained virtually unchanged throughout the week. Import prices have declined marginally, mainly due to the fact that the Euro is gaining against the US and is denominating prices from China and India. However, some Chinese suppliers are starting to push higher HRP levels due to increased demand.