As anticipated, import slab prices to the US for December shipments fell during October negotiations, but the trend for Q1 shipments remains cloudy. Re-rollers tried to push slab prices down to $450/mt CFR from major sources such as Brazil, Mexico, the CIS and Japan, but slab sellers resisted the steep decline, following major slab price drops in August and September. By late August, slab prices fell to $515/mt CFR for October shipments, and mid-September slab deals were concluded at around $470/mt CFR. But for slab shipments in December, re-rolling mills were able to secure slabs from Brazil and the CIS for approximately $455-$460/mt CFR.
Even though slab buyers weren't able to push prices down to $450/mt CFR despite their best efforts, sources tell SteelOrbis that $450/mt CFR still appears mills' target for January shipments--although achieving it is becoming less and less likely. Re-rollers are anticipated to begin January negotiations in mid-November, but with recent price increase announcements gaining traction in the US domestic flat rolled market, slab exporters may try to hike up their prices as well. Mill sources have confirmed improved flat rolled purchasing activity since the price announcements in mid-October, although Q4 order books are far from full and market uncertainty is still driving cautious customer buying patterns.