Ex-CIS steel slab prices have increased over the past week, specifically in the Black Sea region, supported by the positive developments in the flats markets of the major consuming destinations, namely Europe and Turkey.
Relatively strong business activity has been seen in Europe’s import slab market since mid-February, from plate producers specifically. According to sources, a Ukraine-based mill has recently sold a cargo to Italy at $805/mt CFR, and most market players believe this is an effective price. Another supplier in Russia has been selling at around $740-750/mt FOB to the EU. A Russian supplier, based in the Baltic region, is not in a rush to sell slabs for April shipments, given its scheduled oxygen converter repairs and its expected limited availability of semis.
In Turkey, the most recent deal for ex-Russia slab was closed a week ago at $750/mt CFR, up from transactions at $730-735/mt CFR seen early this month. The offers for the current week have been reported at $755-765/mt CFR, while the freight rate is estimated at around $25/mt, SteelOrbis understands.
The SteelOrbis reference price for ex-CIS slabs exported from the Black Sea region is set at $730-740/mt FOB, up $20/mt over the past week.
The import slab market in Asia is lagging behind. After a deal at $720/mt CFR for ex-Russia slabs reported a week ago, trading has been sluggish and suppliers have not been in a hurry to announce new offers, expecting a strong rebound going forward even taking into account the limited demand. Some rare offers or sellers’ price ideas have been reported at $750-760/mt CFR. Slab prices in Asia have gone up by $30/mt recently mainly as “they couldn’t be so low. No one will sell,” a trader said, adding that, as limited supply persists, suppliers in Asia will offer higher or leave the market. No fresh offers have been reported from an Indonesian producer who had asked for $730/mt CFR early last week.
As a result, the SteelOrbis reference price for imported slabs in Asia has increased by $30/mt to $750/mt CFR over the past week.