Turkish hot rolled coil (HRC) producers have remained interested in import steel slab purchases, while aiming to secure their needs amid expectations of higher rolling capacity utilization rates for finished steel. In addition, there is a certain shortage of domestic slab production in the market.
According to sources, around 20,000 mt of slabs were booked last week from Malaysia at $715/mt CFR for April shipment, while sources reported the transaction at $722/mt CFR effective. “An expensive but a good purchase, since Malaysia is a duty-free origin and so there is no obligation to export finished steel,” a trader told SteelOrbis. This week, aside from Malaysian offers at $715-720/mt CFR, there have been offers from Vietnam at $740/mt CFR, which is not considered workable. Some interest, however, might be seen for ex-Indonesia billet, which is on offer at $685/mt CFR, sources say.
In addition, according to the market players, there has been an ex-Russia slab sale to a buyer from the Middle East at around $600-610/mt FOB equivalent from the Black Sea. At the same time, Turkish sources reported there has been a transaction at close to $635-640/mt CFR for Russian origin slab. Another Russian mill, which in not under major sanctions, is currently out of the Turkish market, but the considered price level is around $660-670/mt CFR minimum, while some sources report they received around $700-710/mt CFR as an indication.