Turkey’s slab market has remained more or less the least attractive for international steel slab suppliers as they can find better prices in Latin America and in rebounding markets in Asia. As a result, only some sanctioned sellers from Russia’s Black Sea region have been considering selling to Turkey, while some buyers have been trying to negotiate for alternative, duty-free origins given sanctions-related risks and difficulties facing Turkey’s flats exports. As a result, the gap between slab prices from the different suppliers to Turkey has remained wide.
According to sources, the most recent ex-Russia slab offers have been reported at $420-430/mt FOB, which is around $445-460/mt CFR depending on the volume and the buyer. However, some sellers have been reporting bids at as low as $430-440/mt CFR for Russian origin. The indications for non-sanctioned slab from Russia have been reported at around $480/mt CFR. Generally, the Russian mills are trying to sell slab elsewhere, especially to markets where sanctions-related risks are not as hot a topic.
Ex-Asia steel slab offers to Turkey are still on the high side since suppliers indeed have no reason to go low. The most recent offers from Indonesia have been reported at $550/mt CFR, while China is offering at $560-570/mt CFR. However, there has been a talk about an ex-Malaysia cargo, booked by an integrated steel producer in Turkey. Most sources report the lot was sold at $530/mt CFR, while others object that it is too low for a duty-free origin. In fact, the latest deal for slab from Indonesia was concluded last week at $515/mt FOB, supposedly to Latin America as a top up to a billet cargo. “Malaysia is the only duty-free origin for Turkey and there is no point in selling low, even though there would be a profit. We have HRC roughly at $650/mt now [in Turkey], that makes a $120/mt difference from that import slab indication. And that is for no headache with sanctions [as in case of Russia] and with export licenses for flats,” a trader said.