EU slab imports from China jumped in 2023 amid reduced supply from Russia and Ukraine, with Italy being by far the main destination, Kallanish notes. However, this trade may stop if China implements restrictions on semi-finished steel exports.

EU intake of slab from China surged 70% last year versus 2022 to 624,051 tonnes, according to Eurostat data. In 2022, the intake was 366,665t versus 1,770t in 2021. The increased tonnage from China replaced lost tonnages from war-ravaged Ukraine, which supplied only 89,004t to Italy versus over 300,000t in 2022. However, it is also due to weak steel demand in China amid sustained production there.

EU slab imports from Russia meanwhile fell 10% last year to 3.02 million tonnes, while overall slab imports rose 2% to 5.4mt.

With CIS slab restricted and merchant slab supply within the EU limited, Chinese slab availability amid weak demand in China’s domestic market came at an opportune time for EU slab buyers. However, this may no longer be an option if the rumours of a Chinese semi-finished steel export ban prove to be true (see separate story).

An ASEAN-based trading source points out Chinese suppliers chose to export slab to the EU because prices of hot rolled coil were depressed in Asia last year.

Italy accounted for 563,421t of the China-origin slab intake last year, up from 309,365t in 2022 and virtually zero in 2021. In 2019, prior to Covid, Italy imported 24t of Chinese slab.

Since the beginning of the Ukraine war, Italian buyers have been purchasing slab in Asia, particularly in Indonesia and China, as well as procuring material locally from Acciaierie d'Italia. Italy reduced slab intake from Indonesia by half on-year in 2023 to 67,984t, but 149,569t was imported into Belgium – versus zero in 2022 – with a sizeable tonnage then likely transhipped to other EU destinations.

Italian slab imports from traditional supplier Russia actually rose 4% on-year in 2023 to 723,959t, while its overall slab imports rose 8% to 2.13mt.