Posted on 02 Dec 2021
Merchant slab demand remains lacklustre, with buyers' bids not exceeding $700/tonne cfr maximum in all destinations. But there is a certain level of support growing in China, market participants tell Kallanish.
Demand is satisfactory in Southeast Asia, where two lots of Russian slab were booked at $670/tonne cfr and $685-690/t cfr in two different countries, for February loading lots. More sales are expected at this level in the region at these price levels. Chinese buyers are seen back in the market indicating $650/t cfr, a supporting factor for regional suppliers and a positive factor despite the low price.
Turkish buyers are not actively seeking material, but one Russian supplier indicated $690/t fob Black Sea for one mill – too high a level for bookings. Several sources appraised Turkish slab demand at $650-660/t cfr, netting back to $620-630/t fob, a level too low for CIS suppliers to concede to, as there is demand at higher levels in Europe, albeit modest. European buyers were heard indicating bids netting back to $660-670/t fob, with one medium lot heard booked at this level late last week.
Latin American demand is also not exceeding $700/t cfr, and with freight at around $50/t, this nets back to the same $650/t fob, workable in Europe. As mills are looking at renewing February-loading sales, sales are expected to the region in the coming days, according to several participants. Brazilian slab to the US is offered at $710-720/t fob, and demand is relatively stable, they add.
Overall, prices are not expected to decline more drastically in December, as producers' order books are relatively well filled and demand is proportionate to the available supply. The Turkish currency weakening is a concern, but slab purchasing is expected to resume in December, as prices are workable even at current offer levels, several sources opine.
Source:Kallanish
