The European market for heavy plates is reaching a phase of paralysis due to the continued downward trend in July import prices. Most Italian, Spanish and French distributors and stockists have now stopped buying as the value of plate is depreciating every week in line with Chinese low offers, industry sources tell Kallanish. European producers’ material is now uncompetitive, sources add.

“Some distributors who bought Chinese plates roughly two months ago are now being delivered material that’s €50/tonne ($55/t) more expensive than today’s market value. With prices falling every week, everybody is losing money. Buying has just become extremely dangerous and even end-users who prefer to be supplied by European producers have stopped their purchases,” an Italian distributor comments.

Chinese quotations appear to have become a benchmark in Europe. In September a high tonnage of Chinese heavy plate is expected to reach European ports and more material is scheduled to be despatched from Chinese ports during that month.

At the moment Chinese heavy plate is offered as low as €350/t cif ($384/t), down from €370/t cif Italy/Spain of a few weeks ago. European producers are trying to hold their ex-works base price. The base ex-works range for Northern and Southern European transactions is €460-510/t with prices changing according to quality and quantity, sources suggest.