China has remained an active buyer of steel semis, slabs in particular, and has even accepted a significant increase in import prices. As a result, CIS-based suppliers have received the needed support and have become less aggressive in alternative markets for now.
The latest deals to China ex-CIS have been sealed by a Ukrainian producer at $370/mt CFR for two lots of 45,000 mt each, SteelOrbis has learned, while the previous ex-CIS transactions were agreed on at $360-365/mt CFR. The cargoes will be shipped in June-July. According to sources, the mentioned sales are estimated at around $340/mt FOB Black Sea. An ex-Russia slab supplier has been offering $370/mt CFR to China for July shipment, which corresponds to around $360/mt FOB Far East, SteelOrbis has learned.
Having received support from Asian buyers, CIS-based slab suppliers have increased their prices for alternative outlets. In Turkey, the latest offers from both Russia and Ukraine have been settled at $350/mt CFR, while early last week some sellers agreed to deal at $330/mt CFR. Turkish mills, however, are mainly not in a position to accept the current offers, now when the scrap prices have stabilized while the situation in the hot rolled coil segment remains unstable, SteelOrbis understands. No fresh deals to the EU have been reported in the market, while some sources expect more active business next week.
As a result, ex-CIS slab prices have increased by around $10-15/mt depending on the seller and supplying region. Prices for shipments from the Black Sea region are at $330-340/mt FOB for now, SteelOrbis estimates.