Italian plate prices rise on supply shortage

According to information from this site, affected by strikes at some steel mills in recent weeks, European steel manufacturers have accumulated a large number of orders that cannot be placed. On the basis of weak downstream demand, supply has become even weaker, causing Italian plate transaction prices to rise. The current ex-factory price of steel for delivery in September in the country is 2,900 euros/ton to 2,950 euros/ton (approximately 3,112.86 US dollars/ton to 3,167.12 US dollars/ton). Due to oversupply and continued sluggish demand for steel pipes, steel processors are trying to increase prices by approximately €100/ton (approximately $107.35/ton).

European steel mills are experiencing delivery delays. Affected by problems such as piracy, ships transporting steel need to avoid the Red Sea and choose longer routes to reach southern Europe, resulting in delays in the arrival of imported cold-rolled coils and hot-rolled coils. A large coil buyer told foreign media that the current steel supply chain in Europe is quite complicated. If the plates arrive from Asia in June, they will most likely be delivered in August.

While mill prices are rising, distribution price increases are slowing. In the first quarter, financial losses were recorded across the Italian value chain, with some service centers and steel processors negatively affected. The Italian market appears to be tense, according to a market report from the Italian steel trade association (Assofermet). This is because supply shortages occur despite stable user demand. Reasons for the lack of supply include ongoing strikes, delayed deliveries from other regional producers and limited import volumes. The report noted that Italy's steel inventories are "below average" and scrap prices in the country will continue to rise due to limited supply.