CIS-based slab exporters in the Black Sea have managed to achieve a considerable increase in their prices in deals, specifically supported by the demand coming from certain regions of Europe. In addition, higher price levels are now offered to Turkey as well as suppliers are not in a rush to sell for now.
According to sources, an ex-Ukraine supplier managed to sell around 70,000-80,000 mt of slabs to Italy at around $700/mt CFR for April production, netting back to $670-680/mt FOB as a currently workable level.
In Turkey, ex-CIS slab offers increased by $5-10/mt over the week to $680-685/mt CFR or around $650/mt FOB, specifically in offers from Russia. According to sources, Turkish mills are not in a rush to book slabs for now, taking into account the relatively stable import scrap prices and ongoing hot-rolled production cuts. Taking into account the power shortage supply for industries, resulting from a gas supply decline in Turkey, HRC producers have no other option but to slow down their production - mainly by several hours or by one shift per day, SteelOrbis has learned.
As a result, over the past week ex-CIS export slab prices have moved up from $600-630/mt FOB to $650-670/mt FOB at least in recent deals and offers. Higher levels might be acceptable, but the number of buyers outside of the EU seems to be limited for now.