Posted on 12 Aug 2021
CIS slab exporters remain under pressure to reduce thier offers to secure sales, but poor demand and the lull in the flat product segment make immediate concessions redundant, Kallanish learns from market participants.
Suppliers indicate they are ready for limited concessions, having sold several lots at $790-800/tonne fob Black Sea. A 50,000t Russian lot to Latin America netted back to around $800/t fob, having been sold at $850/t cfr almost two weeks ago, while another Russian lot was sold at roughly the same price, just a couple of days later. The sale to Turkey at $830/t cfr a week ago remains unconfirmed, but buyers in Turkey are understood to be giving indications at $800-820/t cfr, netting back to $775-795/t fob, with sales expected at these levels during August, considering there are volumes available, sources say.
Indeed, a Russian supplier was alleged to have told traders of its September merchant casting availability being restricted by the recent incident with oxygen supply to the BOF shop. Although the firm estimated initial output losses at under 50,000t with output recovery in a couple of days, there is an understanding that the firm's merchant slab availability for September casting is practically closed. Another Russian supplier is offering from the Baltic Sea, at a price equivalent to $820-830/t fob, destined for Europe, another trader adds.
Ukrainian material is also marketed at $800-830/t fob, depending on destination, with some September casting still available. A Russian supplier selling largely from Russian Far East is almost closed for September casting volumes, and aims for $850/t cfr in Southeast Asia, where flat and semis prices remain under pressure from weakened by Covid-19 restrictions curbing activity. There is also a pool of alternative supply - Indian and Indonesian material has been sold regionally, including China, at $750-780/t cfr, but the quality and range of the slab is very narrow, traders note.
The latter is what preventing Indian slab entering the Mediterranean market, despite apparent attractions of its price.
"By the time it has been shipped here, and tested, it is likely it will cost more than what CIS is offering at: there is very limited quality and sizes, and I cannot see Turkish mills taking this risk," a trader says. Brazilian slab, which is currently at around $930-940/t fob, is selling fast to the US, and so far has not been offered in the eastern hemisphere, although this may happen for fourth quarter sales when the US quota is the smallest, traders note.
Source:Kallanish
