With tepid demand and decreasing prices on the US flat rolled market, US slab prices are retreating as well.
US slab demand is slow for the time being; as prices in the US flat rolled market soften, re-rollers are not interested in acquiring any significant slab tonnage, although they are continuing to make smaller slab purchases to meet their immediate needs. Additionally, with no rush to buy slab, they are attempting to negotiate lower price levels.
CIS suppliers are striving to maintain the high price levels, however, and current slab offer prices to the US have come down by approximately $20/mt from a month ago to the range of $670 to $680/mt CFR. Nevertheless, slab buyers are seeking even lower levels of around $650/mt.
As it is anticipated that US flat rolled prices will drop further, and as such, US slab prices are expected to follow the downward trend.
The latest data from the US Department of Commerce's Steel Import Monitoring and Analysis (SIMA) system show that the total amount of slab imports into the US in the month of June was 508,629 mt, reflecting a decrease of 188,464 mt when compared to the figure in May. The primary countries that exported slab to the US in June were: Brazil, at 253,055 mt; Russia, at 116,559 mt; Canada, at 42,502 mt; Australia, at 36,139 mt; Japan, at 30,836 mt; India, at 19,791 mt; and Mexico, at 9,154 mt.