Although flat steel prices have remained firm in Turkey, slab buyers in this destination are currently absent from the focus of CIS-based suppliers. Weaker scrap prices and currency fluctuations have made Turkish buyers hesitant, while customers from Central and South America are eager to purchase slab and have been paying higher prices even taking into account the high freight rates.
According to sources, two deals have recently been closed to Brazil from both Russia and Ukraine, while another lot has been sold to Mexico by a Russia-based mill. All three cargoes have been traded within around $780-785/mt CFR and for around 30,000-45,000 mt each. Market players, however, have different estimations regarding the FOB levels of the sales. Some calculate these at around $750/mt FOB, while others believe that the freight should be around $50/mt minimum. The mentioned sales were done for May-June shipments, SteelOrbis has learned. Some sources do not exclude that the price situation in the freight market may cool off closer to late spring.
The most recent deals to Turkey were closed at $740-745/mt CFR last week, with freight estimated at $20/mt. However, the latest indications for the Turkish market have been reported at $760/mt CFR minimum in terms of offers. In the meantime, HRC prices in Turkey have hit and exceeded $900/mt ex-works.