Ex-CIS steel slab suppliers have recently traded some decent amounts to Asia and the Mediterranean area at around the same prices fixed in the previous round of sales. However, the new offers are expected to be voiced at much higher levels with support from strong raw material prices and the hot rolled coil (HRC) uptrend.
Ukraine’s Metinvest sold 50,000 mt of slab to Italy at slightly above $450/mt CFR, translating to around $430/mt FOB. A similar FOB level was also fixed in a mill’s sale to Turkey for around 20,000-30,000 mt at $448/mt CFR. In addition, according to sources, a Russian mill has sold 20,000 mt to Turkey at $449/mt CFR Iskenderun. However, the information has not been fully confirmed by the time of publication. Ex-CIS mills are said to be targeting $465-485/mt CFR in new offers and deals to Turkey for November shipments.
Russia’s Severstal, which is going to handle a series of maintenance works at its hot rolling lines in the October-November period, is in the market to sell slab within the increased allocation. The current level is at $415/mt FOB and most probably European markets will be targeted but sales to Turkey are also not excluded.
In the Far East, ex-Russia slab cargo was sold at $455/mt CFR to China, with the freight estimated at $10/mt. New offers are expected to hit $470/mt CFR, market sources say.