The sharp uptrend seen in the Turkish hot rolled coil (HRC) market has provided support for slab imports, as was expected. As a result, CIS-based sellers have managed to get an increase of around $20/mt in the most recent slab deals.
A Ukraine-based steel producer has recently sold a slab cargo to Turkey at $405/mt CFR, while the previous two sales from the CIS were closed around two weeks ago at $385/mt CFR. Moreover, sellers report there are more takers at the mentioned slab price in Turkey, while negotiations are continuing. Local HRC prices in Turkey have reached $470-500/mt ex-works this week, though the higher end is not yet widely accepted.
As a result, ex-CIS slab prices are currently standing at around $390-395/mt FOB for February shipments. Turkey is expected to remain active for now; however, players are trying to assess the potential effect of the US decision to re-impose duties on Brazil. Some expect that the Brazilian mills may come to the Turkish market with some aggressive slab offers, which could cool off the bullish mood. Current Brazilian slab offers at $410/mt CFR to Turkey for February shipments are not considered workable versus the ex-CIS levels.