Slab prices in the CIS rise in a scarce market

While slab trading in the CIS remains subdued, sales to southern Europe and Turkey pushed prices back up last week, with new offerings expected at even higher levels, Callanishu market participants said.

Russian slabs were sold to Turkey at US$710/tonne francs, which equates to around US$680/tonne fob Black Sea, while a large sale to Italy was heard at US$710/tonne francs nearly two weeks ago , which corresponds to the same level. . Due to unsatisfied demand in both regions, suppliers are quoting $700/t fob amid limited supply from both Russian and Ukrainian suppliers, the sources said.

Demand in Turkey is strong due to a recovery in flat steel demand and prices, which have risen by about $130/t from the first week of January to $950-970/t ex-works for hot rolled coil. Turkish mills' order books are now stretching into May, with virtually no rolled stock for April, amid power cuts holding back production and pushing domestic demand up.

Alternatively, Brazilian supplies are also hard to come by as regional supplies remain limited and prices rise with delivery times. But market participants expect at least one batch of Brazilian boards to be contracted for shipment in April as Turkish and Italian buyers continue to push for diversification. The fall in prices for flat products in the US also plays into the hands of European buyers, somewhat holding back a possible increase in prices for Brazilian plates. The latest supply data from Brazil was at the CIS level at $670-680/t FOB.

Meanwhile, the Southeast Asian market remained calm due to the Lunar New Year holidays, but higher flat steel prices are supporting the rise in slab prices in the region. Market sources put the new price level at $700/t cfr, although there were no offers or sales last week. Demand, delayed by the holidays and the Beijing Olympics, is expected to be strong from mid-February, participants suggest.