Turkey-based HRC producers currently prefer to evaluate the market conditions in the import slab segment rather than entering serious negotiations. Moreover, several large deals have been closed in the previous 10-12 days for July and August shipments, therefore not all buyers are currently in a rush. In addition, Turkey’s HRC pricing continues to slide, thus putting additional pressure on import slab price ideas.
According to sources, Turkey has closed two deals for 50,000 mt of steel slab each from Malaysia, which is a duty-free origin in this market. One deal is reported to have been closed at $483/mt CFR and the other at $480-481/mt CFR, both for August shipments. “The price is workable and for September Turkey may have higher HRC prices than we have now,” a trader told SteelOrbis. Currently, Malaysia is not offering slab firmly to Turkey while the price idea is at around $490/mt CFR, buyers say. An Indonesian offer is indicated at a lower level, around $465-470/mt CFR Turkey, while the latest workable price for Chinese slab in Turkey stood at $470/mt CFR. As for ex-Russia price indications for import slab, the levels of $455-465/mt CFR are estimated for non-sanctioned supplies. However, sellers are not in much of a rush to initiate serious negotiations.
“Turkey’s own slab production costs should be hovering at around $495-505/mt with the recent steel scrap price average, and importing slab is profitable for mills at least to balance out the cost. But if HRC continues sliding, Turkey would be seeking to pay $440/mt for Russia and $460-470/mt CFR for Malaysia,” a source said.
Most major Asian slab exporters have had to correct prices down over the past two weeks to accelerate sales. For instance, this week an official offer from the Indonesian mill for August shipment slabs is at $430/mt FOB, down from $440/mt FOB in late May. “Now they are offering almost similar prices for billets and slabs as sales of the latter are not that good,” an Asian trader said.
The ex-Malaysian slab price has fallen to $450/mt FOB or just slightly below this level versus at least one deal heard at $465/mt FOB in the second half of May. Vietnamese mills have been less active in slab offering recently, focusing on local HRC sales.