Slab prices in the CIS continue to rise

Prices for slabs offered by suppliers from the CIS countries continue to rise, fueled by a shortage of materials amid strong demand and a rise in prices for primary raw materials and finished sheet products.

CIS slab sales were closed this week at $ 480-490 /t of Black Sea grade to Europe, with bids of around $ 500-510 /t FOB for new negotiations, market participants say.

Demand in Europe is growing steadily, as evidenced by higher apartment prices and seasonal demand, while availability is limited in factories in the CIS countries. Alternatively, the Brazilian slab sells for about $ 525-530 per ton, but the delivery time is about a month longer than for materials from the CIS countries. Moreover, these supply levels are likely to rise inevitably as Brazilian slab producers continue to focus on supplying rollers for North and Central America.

Turkish buyers remain out of the market, probably concentrating on diverting some of the billet casting capacity to produce as much slab as possible where possible. Offers to Turkey started at $ 510-520 per tonne, but with bids at $ 490-500 per tonne, no sales were made this week, the sources say.

The material shortage is noticeable, as a large Russian supplier of slabs sold from the available materials. Meanwhile, another Russian supplier, which sells most of its materials through Far Eastern ports, has also closed its deal. The latter acknowledged that purchases in Southeast Asia were lackluster last month, but early signs indicate that demand is about to return. This is due to the rise in prices for plate steel in Ukraine and Russia, and seasonal growth is just around the corner.

The European source is also "... just starting to pick up steam", according to another source, as the region is likely to continue to reserve large volumes, offsetting Turkey's absence from the slab import market.