The Turkish slab market remains dominated by cheap Russian offers, which make the prices from alternative sellers completely unworkable, forcing them to seek sales to the EU market. Russian suppliers, despite a somewhat limited export allocation, remain focused on Turkey for now, given the low prices in Asia and rather expensive logistics.
This week, according to sources, one Russian mill has offered slabs at $480/mt CFR to Turkey, while mid-November sales have been closed at around $460-475/mt CFR. Another supplier, a sanctioned producer, is reported to have sold a cargo at $440/mt CFR. In addition, the same mill is reported to be ready to deal at $420-430/mt CFR, being under pressure to sell and offering end-of-January shipment. It is worth mentioning that buying Russian slabs still gives the Turkish mills an opportunity to get margins from HRC, given a price difference of at least $160-180/mt.
Amid the aggressive pricing from Russia, offers from alternative suppliers are not given serious consideration. Brazil has been trying $510/mt FOB or around $560/mt CFR, while Asian suppliers, namely Vietnam and Indonesia, are in the market with $530-550/mt CFR. “They [Asians] would like to sell to Turkey but at the European price levels,” a Turkish buyer said. As SteelOrbis reported previously, some large ex-Asia lots were sold to the EU at $490/mt FOB to plate producers.
As for Asia as a slab buyer, there is hardly any chance for Russia to sell to this region from its Black Sea or Baltic ports due to costly logistics. In addition, the latest deal from Russia’s Far East region was closed at $490/mt CFR Indonesia, while Iranian origin slab was traded at $450-454/mt CFR. “Clearly, if the freight from the Black Sea is around $70/mt minimum and at $110-120/mt or higher from the Baltic, there is no chance for Russia to sell, aside from Zap-Sib of course,” a market source told SteelOrbis.
