With Limited Demand, the European Steel Plate Market is Under Pressure

New Delhi:  In Europe, the Steel Plate prices continued to fall this week as the manufacturers are slightly concerned about the market demand. According to market participants, domestic prices for heavy Steel Plates have been under pressure due to low demand, while Italian rollers accepted reduced prices and German mills held bargains stable. Meanwhile, the hefty Steel Plates prices quoted by Italian suppliers fell by USD 25.18/MT weekly and settled at USD 881/MT ex-works Italy. However, a tradable price of USD 855-905/MT ex-works has been noted.

According to our sources, distributors have yet to show much interest in large Steel Plate purchases amidst adequate stocks and traditional destocking by the end of this quarter. According to our sources, Steel Plate buyers have begun to express interest in material delivered in January-February 2023. Steel Plate demand is low because stockholders have enough material, but this week's product market is stable. Market participants reported some inquiries for Steel Plates delivery in the first quarter. Meanwhile, slab prices have fallen due to lower offers from Asian market participants.

German Steel Plate mills in Northern Europe have refrained from trading on the spot market, preferring to focus on long-term contracts and projects. Additionally, traded volumes in the regional market remained low, with distributors and steel service centers still preferring to sell their expensive Steel Plate stocks rather than purchase new ones. Furthermore, trading activity in the Italian market was low. Buyers were still hesitant, and the overstocking problem persisted. At the same time, several trading authorities reported that the manufacturer was importing steel slabs from the Southern American market and other countries to keep its rolling mills operational.

As a result, ChemAnalyst predicts that Steel Plate prices will fall until November due to limited demand dynamics. On the other hand, product prices are expected to rise further in December as first-quarter 2023 inquiries rise. Buyers will be willing to stockpile inventory in anticipation of seasonal demand.