CIS-based steel slab suppliers have started the year with a significant price increase for exports, counting on some support from the high level of offers in the hot rolled coil (HRC) segment.
This week, ex-CIS slabs for March shipments are on offer at $420-425/mt FOB, up by around $15/mt since before the holiday. In particular, Turkish mills report there are offers at $435-440/mt CFR but they are mostly taking their time to make purchases. One reason is that the mills have enough stock for now and are most probably waiting to see a clearer market picture in the HRC sector. “Turkey is at above $500/mt for HRC and in theory $440/mt CFR for slabs can work, but only if there is no rollback in flats,” a trader said.
While HRC prices are stable for now, there are some concerns regarding the trend being sustainable, partly as there is no movement in sales to the EU. CIS-based mills, however, are rather positive for now. “Brazil is not in the market and the demand is there: Asia is asking and Turkey too,” one of the producers mentioned.