The number of import slab offers is quite high in Turkey these days, but buyers are mostly aiming for discounts, particularly from Asian suppliers. The main reason is that domestic slab production is currently evaluated as being more attractive from the cost point of view, versus usage of non-toxic import slab options. In the meantime, the price ideas for ex-Russia slab, which is already offered at more aggressive levels compared to Asia, are even lower due to the toxicity of the origin.
The “clean” slab origins are currently offered at $535-555/mt CFR depending on the destination, while the domestic cost of slab production from scrap in Turkey is estimated at around $535-537/mt. “From scrap to slab the cost should be around $160-170/mt and then a $50/mt rolling cost [to HRC],” a supplier told SteelOrbis. Therefore, Turkish buyers are bullish for discounts on import slab, claiming that scrap usage is currently more beneficial for them.
Indonesian steel slab has been offered to Turkey at a rather aggressive level of around $535/mt CFR for November shipments, while last week many sources debated whether this level was true. Currently, while some buyers believe they might be able to push for $510-515/mt CFR from Indonesia, the supplier rejects such price ideas. The indicative offers for duty-free slabs from Malaysia have been reported at $550/mt CFR, while buyers expect $540-545/mt CFR levels to be reachable. Along with Asia, there has been an offer for ex-Saudi Arabia slab for November delivery at $550-555/mt CFR, SteelOrbis has learned.
The indications for toxic Russian origin are naturally much lower in Turkey, at $490-500/mt CFR, down from around $510/mt CFR seen about two weeks ago. One of the Russian suppliers and some Turkish buyers have reported the workable price voiced by customers is not higher than $460-470/mt CFR, and so there have been no sales. Although Russian slab usage is more attractive from the cost side, Turkish mills are reported to be more cautious towards ex-Russia purchases, since their HRC and pipe exports to the EU may be jeopardized. However, Russian semis may still be used for non-EU exports, for example to North Africa and other non-EU member states. Still, Turkish producers are expected to be careful in dealing for Russian slabs, to avoid piling up large stocks and to increase their own slab production, SteelOrbis understands.