CIS slab market fine despite 201 tariffs

CIS slab market fine despite 201 tariffs

Traders reported in mid-April that slab prices were growing in all regional markets in spite of U.S. 201 tariffs. Industry sales people concur that the tariffs haven't affected slab sales or slab prices. Russian traders report their slab market is in good condition with no evidence in changes in destination for Russian slab exports. Overall, in April, most traders expected a price rise of $5/mt to $7/mt in May. Both Europe and Asia are seeing price growth; some traders report the dollar equivalent price may end up being higher in Asia than in Europe. Sources reveal recovery of American demand is boosting price growth in Asia – ahead of other markets. Some insiders speculate that the largest Russian flats producers – Novolipetsk, Severstal and Magnitogorsk will probably redistribute quotas on slab exports to the US among themselves. It will then be up to the Ministry of Economic Development and Trade to decide to implement it. Sources report that most steel mills are hesitant about commenting on whether U.S. tariffs will lead to an increase of slab sales to other regions. Russian slabs are not subject to restrictions on amount, specifically in the EU. Most insiders in the Russian market agree that an increase of slab sales to the EU isn't likely. Their reasoning is that the European market is well regulated in terms of trade volume. In addition, they report it would be close to impossible to increase slab sales there.