Russian slab exporters have been under pressure in recent weeks, as they have failed to find customers in Turkey and in Europe and, if someone has needed to sell, Asia has been the only option. However, deals there are possible only at low prices. Asian slab suppliers are expected to come back next week from their holiday and, even though there is some slight optimism about China, market sources expecting prices below $500/mt FOB in new negotiations to Europe and Latin America.
According to sources, around 100,000 mt of ex-Russia slabs have been traded to Asia in the past week. A deal to India has been done at $470/mt CFR and one to China at around $445/mt CFR. As SteelOrbis reported in late September, another Russian seller was in negotiations to China at $460-475/mt CFR. Due to slower-than-expected demand in China and no increase for HRC in September, buyers have been ready to import slabs only at “benefit” prices, while Russian suppliers with export allocations have had no other choice. “There is nothing interesting seen in slab exports. If the scrap is at RUB 30,000/mt and is not going down and slab prices are not going up, there is not much interest in exports,” another exporter from Russia said.
As for Asian slabs, this week has been silent due to the Chinese holidays, while the previous negotiable levels were at $505-510/mt FOB, but some market sources believe that some customers may even obtain $490/mt FOB in time.
In Turkey, on the contrary, import slab prices, particularly from Russia, have remained at relatively stable levels. A non-sanctioned supplier was offering at $490/mt CFR last week, but lately some buyers have reported that they received up to $500/mt CFR. The sanctioned Russian mill, according to sources, is somewhere at around $470/mt CFR, but $460/mt CFR is also considered possible. However, Turkish mills seem indeed to be refraining from active slab purchases from Russia in order to avoid problems in HRC sales to the EU. “The flow would still be there since at the end of the day it is a matter of the [ex-Russia] price. But, sure, volumes may be less,” a source told SteelOrbis. Instead, there has been information about a slab cargo sold to Turkey’s Izmir region from Saudi Arabia at below $525/mt CFR, versus the initial offer of $535/mt CFR for November shipment. The latest offers from Indonesia and Malaysia have been reported at $540-545/mt CFR and $560/mt CFR, but no information about the deals has been confirmed.