Major Asian slab exporters, who have been targeting higher prices over the past few weeks, have found it difficult to push volumes at higher levels for July shipment due to resistance in all major sales destinations.
Offers for ex-Indonesia and ex-Malaysia slabs have been reported at $515-535/mt FOB depending on the destination. However, very few customers have been ready to discuss a price increase for July shipment materials given the continuing weakness of the flat steel market globally. Moreover, some bullishness of ex-ASEAN slab exporters has been supported by limited offers recently coming from China due to “maintenances and as sellers are afraid of the possibility of export duty on semis,” as one source said.
In Europe, offers for the most popular plate-grade slabs have been very rare. The last deal was heard for this grade from China at $600/mt CFR, up by $10-20/mt from deals done at $585-590/mt CFR in the second half of April. However, by now, rare offers are already at $595-625/mt CFR to Europe and buyers are not interested in any higher levels, believing that, with weaker the local flat steel market in the summer season, sellers will return to the export market with better offers. Ex-ASEAN HRC-grade slabs have been available at $570-590/mt CFR in Europe for July shipment, depending on the seller. Market sources said that some mills which closed June shipment deals at $520/mt FOB have been targeting $535-540/mt FOB, but some agree on discounts, understanding that there is a small possibility buyers will accept.
The tradable level for ex-Asia slabs in Latin America has been reported at $570-580/mt CFR, translating to around $520/mt FOB or so. Negotiations are ongoing and a deal is expected soon, though the final price is still in question.
At the same time, in Turkey, not many buyers are ready to make purchases given their relatively slow HRC segment. In the meantime, prices from Asia have remained the highest in the market, at around $550/mt CFR minimum from China and $555-560/mt CFR from Malaysia and Indonesian. In fact, according to some sources, at least one ex-Malaysia slab cargo of 50,000 mt was booked to Turkey at the end of last week at around $540-545/mt CFR for end-of-June shipment. Non-sanctioned Russian offers are still at around $510-515/mt CFR officially, but the $500/mt CFR level is considered reachable. Sanctioned Russian slabs have been on offer at a minimum of $480-485/mt CFR, up $5-10/mt from the previous deal, SteelOrbis has learned. Saudi Arabia has kept offers to Turkey at around $545/mt CFR, while the information about a sale at around $525/mt CFR has not been confirmed by the time of publication.