Posted on 28 Aug 2020
CIS slab export prices have remained at stable levels for three weeks in a row, after offers were tabled for buyers in Turkey at $450/tonne cfr. The market was quiet for these three weeks except for Russian slab sales to China, but this week there was movement close to offer levels, Kallanish hears.
A Russian supplier sold оne October cast lot to North America at a netback price of around $432/t fob Black Sea. The sale has completed the supplier's October casting programme. Demand in North America remains and sources do not rule out more sales there by other CIS suppliers.
Offers of September cast slab were tabled to Turkey by the Ukrainian supplier at $450/t cfr three weeks ago, but the sale this week at just under $450/t cfr was already from October casting books. Turkish buyers were moved to book by the rising scrap prices and up to 50,000t was contracted. Yet again, market observers expect more sales to Turkey to commence in the coming week but suggest prices may be higher, starting from $450/t cfr.
Negotiations are also taking place with Italian re-rollers. Price expectations are at a minimum of $450/t cfr, although several sources suggest buyers will be forced to pay more, to cover for higher freight rates as compared to Turkey and the Americas amidst rising European HRC prices.
China booked several Russian lots in the last two weeks at around $440-445/t cfr, shipped from Russian Far Eastern ports, of October casting. Demand in China is not active for slab imports this week, as the country's HRC prices are declining, to the extent of exports resuming on forming new arbitrage. Several traders noted renewed exports of Chinese HRC to the US.
Overall, expectations for CIS slab export market are of on-going strength, especially as European and US flat steel markets continue to demonstrate green shoots of recovery. Relatively limited availability of supply lends support to prices, along with firm iron ore and firming flat products prices in major economies. Southeast Asia, however, remains out of the market for now.
Source:Kallanish
