Business activity for steel slab globally has revived somewhat lately, taking into account that certain customers have found themselves in a position to restock. As a result, Asia has traded some sizeable volumes particularly to Latin America and more lots are being offered to Europe and Turkey, where the indicated prices may be considered workable in the near future. In the meantime, the supply volume from Russia is still limited, which gives Asia more opportunities at least in the Turkish market.
Chinese slab offers to Turkey have been heard at $530/mt CFR for an ex-stock cargo with the potential for a discount of around $10/mt. Moreover, there has been a talk about sale of this cargo closed by an Iskenderun-based buyer at $515-520/mt CFR. The Chinese offers for shipment in May and later have been reported at a minimum of $540/mt CFR Turkey. In Europe, China is offering at a minimum of $590/mt CFR for plate quality steel slabs and some offers are reported at up to $600-610/mt CFR, SteelOrbis has learned.
According to sources, previously, a 50,000 mt ex-Indonesia billet cargo was traded to Latin America at $500-505/mt FOB, relatively stable over two weeks, while earlier it was assumed that it had been destined for Turkey. In Turkey, the estimated offer level from Indonesia and Malaysia has been reported at $540-545/mt CFR minimum, while some higher levels are expected to be offered shortly due to higher iron ore prices.
As for Russia, the prices still differ quite significantly depending on whether the mill is sanctioned or non-sanctioned. Sources reported that a sanctioned supplier is aiming to sell slab to Turkey at $485-490/mt CFR, versus the previous deal at $490/mt CFR closed few weeks back. An indication from a Donbass-located mill has been heard at $450/mt CFR, which can translate to around $475/mt CFR for a sizeable lot. In the meantime, buyers expect a non-sanctioned Russian mill to come up with an allocation for May shipment shortly at prices close to the latest ex-Asia indications. However, the price may even be slightly higher due to the advantage of the shorter lead time, SteelOrbis estimates.