CIS-based steel slab exporters have managed to increase their deal prices significantly since early last week in sales to the regular large consuming destinations. Sufficient demand and, what is more important, surging hot rolled coil (HRC) prices have become the key supporting factors.
In the Mediterranean region, according to sources, the latest deals have been closed to Turkey at $630/mt CFR, up by around $30/mt as compared to the previous sales price. The total volume has not been confirmed by the time of publication, but market players estimate it as at least 40,000 mt. New offers are expected to be announced at much higher levels, taking into account the sharp increase in scrap prices and the difference between import slab and local HRC which is at $120/mt. “Slab will remain in demand in Turkey since scrap will definitely rise further, which is reasonable according to the current finished steel levels,” a trader told SteelOrbis.
In the Far East, higher HRC prices have also become the reason for buyers to accept a significant price rise for import slabs. For instance, in Vietnam, the tradable value for imported HRC has reached $650-660/mt CFR, up by $16/mt from early last week. Flat steel producers in Taiwan have continued to push up prices, which touched $700/mt FOB in a deal to the EU last week. The most recent deal for ex-Russia slab has been closed at $615/mt CFR for a regular volume, while early last week the potential workable level was estimated at $570-580/mt CFR. The new offers from Russia have been increased to $630/mt CFR, SteelOrbis has learned.
