Strong hot rolled coil (HRC) and scrap prices in Turkey have supported the steel slab suppliers’ positions. The CIS-based slab producers have managed to achieve price increase in sales to Turkey and, moreover, are now targeting even higher levels.
According to sources, Russia’s NLMK has recently sold a slab cargo to Turkey at $472/mt CFR Izmir. The previous producer’s deal to the different buyer was closed earlier in September at $465/mt CFR, SteelOrbis understands. Both deals were for November production of slabs. In the meantime, Ukraine’s Metinvest is not in a rush to trade slabs and is targeting to get $480/mt CFR Turkey lowest. Moreover, similar or higher levels are expected to be discussed in Italy next week. As a result, ex-CIS slab prices are now at $455-465/mt FOB.
Alternative suppliers are also present in the Turkish market. British Steel targets to get $500/mt CFR for euro 1 steel slabs, while bids are closer to the ex-CIS deal price levels. Brazil’s CSP, according to sources, has traded some 30,000 mt at $475/mt CFR. Some say that another 20,000 mt were sold by the mill to Italy at the same price level.
In the Far East, latest deals for Evraz origin of slabs were closed at $470-475/mt CFR to Southeast Asia. Offers for the remaining November production volumes are at the same levels while the freight rates are estimated at $15/mt.