Some of the Turkish producers are in the market to purchase import slabs and, according to sources, several origins are currently on the table for discussion. However, given the slow business for HRC, particularly for exports, and the uncertain situation in the import scrap segment, slab buyers have been pushing for discounts.
In fact, Malaysia is now offering at $705-710/mt CFR for slab to be shipped in May, while previously the supplier was targeting $730/mt CFR. The latest deal, reported around two weeks ago, was closed with an integrated Turkish producer at $722/mt CFR, which was considered high even for duty-free origin.
The slab offers from Indonesia, according to sources, stood at around $670-675/mt CFR last week, but now the supplier seems to be ready to negotiate at $665/mt CFR for May shipments.
In the meantime, three of the Russian mills are currently in the market, aiming to sell slabs. Two of them are offering 30,000-40,000 mt lots at $650/mt CFR for mid-May shipments. According to the market information, one of them is about to be booked following the ongoing negotiations. Another Russian mill is at $640-650/mt FOB, which is around $670-680/mt CFR Turkey. No transactions have been confirmed by the time of publication and most sources believe it is not a workable level.
Vietnam, which was offering $740/mt CFR last week, has decided to focus on other destinations, where the price of $710/mt FOB or around $750-755/mt CFR to the EU.
