European slab manufacturers insist on raising prices

European steel producers sought higher plate prices in the week to December 8, although demand remained weak.

While projects are showing healthy demand for flat products, large distributors are avoiding purchasing larger tonnages as they already restocked inventories when flat prices declined in the first half of the fourth quarter.

“Slabs are not really moving on real trades compared to the previous week, despite re-rollers targeting higher prices,” said an Italian trader. “Large shareholders have already replenished their stocks.”

While other sources have also confirmed that sales volumes have declined, the cheapest material has disappeared from the market as Italian re-rollers struggle to absorb high slab prices.

Platts estimates that domestic plate prices in southern Europe rose by €15/t during the week to €750/t ex-works in Italy on 8 December.

Transactions and market value were estimated at 730-750 euros/tonne, ex-plant in Italy.

Platts rates imported slab prices in Southern Europe stable this week at $635/t CIF Italy Dec 8.

The estimate was based on recent deals concluded at $630-$640/t CIF Italy for commodities from Asia.

In North-West Europe, prices for steel sheets have also increased, although German steel producers remain primarily focused on supplies under long-term contracts.

Platts assessed domestic plate prices in North-West Europe by €30/t on the week to €830/t ex-works in Ruhr on 8 December.

Offers have been reported for 840-850 euro/t, delivered to Germany.