CIS-based steel slab sellers have been witnessing rather lively demand for their product globally over the past two weeks, although trade has been not easy. China has been the key importer recently with over 150,000 mt booked since last week. Sufficient volumes have also been traded to Mexico, Morocco and Italy. The prices, however, have indicated a decline with a larger decrease registered prices from the Black Sea region as compared to shipments from Russia’s Far Eastern ports.
Over the past week, deal prices ex-CIS from Far Eastern ports have decreased from around $400/mt FOB to $390-395/mt FOB for April production. In the Black Sea region, the situation is different. While Italy, North Africa and North America have been ready to pay $380-385/mt FOB and above, deals to China were closed at $355/mt FOB, SteelOrbis has learned.
Since last week China has been the most active import slab market for CIS-based sellers, both shipping from Far Eastern ports and the Black Sea. According to sources, last week 45,000-50,000 mt of slabs were sold to China from Russia’s Far East at $410/mt CFR, while similar volume has also been traded recently, but this time slightly above $400/mt CFR. In addition, a 35,000 mt cargo has been recently sold to China from the Black Sea at $395/mt CFR, SteelOrbis has learned. A large slab cargo has also been sold to China from the east of Ukraine, again at $395/mt CFR. It is worth mentioning that negotiations continue between CIS-based first-tier mills and China for steel slabs.
The Italian market has been active, supporting the slab pricing ex-Black Sea. Early this week, 30,000 mt were sold from Ukraine to Italy at $410/mt CFR, while some sources have reported deals at $405/mt CFR. As a result, the workable level for Italy was settled at $385-390/mt FOB, though this may not be the case in the coming days as pressure rises.
In Turkey, trade has been muted due to limited flats demand in the country, great uncertainty, and the recent collapse of import scrap prices. No negotiations have been reported, while some sources estimate Turkey would hardly pay anything above $380/mt CFR.
Some activity was seen in North America with 40,000 mt booked to Mexico around a week or 10 days ago at $380/mt FOB. More negotiations at similar levels have been reported with Brazil and may result in deals shortly.
North Africa has also been active. Last week, a Russia-based steel producer sold around 30,000 mt of slabs to Morocco at $385/mt FOB, SteelOrbis has learned.