Steel producers from Turkey have continued to book import slabs but have been able to get discounts from the CIS side. Moreover, in the new round of purchases, bids are expected to be at even lower levels as the situation in the HRC segment is currently unfavorable.
Turkey purchased several cargoes of ex-CIS slabs in mid-August within the range of $415-425/mt CFR, down by $10-15/mt compared to the previous deals. The latest transactions, according to the sources, were closed at around $410/mt CFR: however, this level was not widespread in the market, SteelOrbis understands.
The current slab offers for October production from the CIS are reported at $420-425/mt CFR from the Black Sea ports, while the tags from the Baltic Sea are at €390/mt CFR or $425/mt CFR. No firm offers from Brazil have been heard in the market this week; Brazilian suppliers are mostly concentrating on trade with the US, SteelOrbis understands.
Turkish slab buyers are expected to target sizeable discounts in the upcoming round of bookings, with the HRC segment being rather weak these days. “HRC is priced at $470/mt FOB today, but sales are still very weak and bids for big volumes are far below,” a trader said. “It means that, with around $40/mt rolling cost, the [slab] offers at $420/mt CFR will hardly be accepted,” he added.
€1 = $1.09