Slab prices continue to rise amid reduced supply

Slab suppliers from the CIS exited the market this week, with only the Ukrainian supplier having raw materials for casting in August.

In the absence of supplies from the CIS, the Turkish retailer has booked 20,000 tonnes of British-made slab at a price of US $ 375 per tonne franc by September arrival. Meanwhile, the Ukrainian supplier points to Turkish factories at $ 385 per ton at the end of September, returning to $ 370 per ton in the Black Sea.

A large Russian slab supplier is experiencing increased demand from its European rolling mills and, having sold large batches to China, is not yet offering products that will be cast in August. China, meanwhile, continues to reserve available tonnage from Brazil and - last week - from Mexico, with prices ranging from $ 395-400 per tonne, sources say.

It is assumed that Italy orders Ukrainian slabs in small batches at a price of USD 370-380 /ton, hand to hand. The future of the country's largest steel plant is shrouded in uncertainty as the recovery from Covid-19 is progressing slowly. These volumes are insignificant compared to traditionally booked tonnages, traders said, but they are expected to increase by October.

Despite a slower-than-expected recovery in the US market and lower-than-usual slab consumption, Brazilian factories are sold out before loading in September. Although the market is calm, there is a shortage of slabs, which keeps prices at current levels and stimulates an increase in bookings for August deliveries.