CIS-based steel slab exporters have decreased their prices in the second half of August, driven by lower hot rolled coil prices in key consuming markets, high freight rates and competitive scrap prices. Nevertheless, due to the accident at NLMK, which has been forced to buy slabs instead of selling them, availability in the market remains limited.
The current level of ex-CIS slab prices is estimated at $750-760/mt FOB versus $765-780/mt FOB valid in the middle of August. A sale from Ukraine of 15,000 mt was concluded to Italy at $800/mt CFR, with the freight estimated at close to $40/mt.
Latin America, specifically Mexico, is reported to be in the market to buy. The workable level is estimated by some market players at $750/mt FOB maximum, and so deals may be concluded soon.
In Turkey, most market sources say activity is very low, mainly due to the big gap between offers and bid prices. While CIS-based mills are targeting $780-800/mt CFR in indicative offers, and Saudi’s Hadeed is at $750/mt CFR, bids are hardly above $730-745/ CFR. “Today, scrap is better than buying slabs and even billet is better for those who can switch [crude steel production],” a producer told SteelOrbis.
It is worth mentioning that due to the accident at NLMK, the mill has hardly been in the market to sell slabs in August and, moreover, it has booked at least two cargoes of slabs from its competitors from Russia and Ukraine. In the meantime, Russia’s Severstal is expected to be a bit more active in terms of slab exports for October production due to the regular scheduled maintenances at both its hot rolling lines. The supplier’s opening price is $750/mt FOB Baltic Sea.
In the Far East, no fresh sales have been heard from Russia. The targeted price is $800/mt CFR or around $770/mt FOB, with no takers just yet, SteelOrbis has learned.
