Slab exporters from the CIS are still forced to cut their offers to ensure sales.
Suppliers say they are willing to make limited concessions, selling at $ 790-800 per tonne on the Black Sea market. A Russian shipment to Latin America brought in about $ 800 a tonne net, being sold at $ 850 a tonne almost two weeks ago, while another Russian lot was sold at about the same price just a couple of days later. Sale to Turkey at $ 830 per tonne FOB. The back remains unconfirmed, but buyers in Turkey are expected to provide estimates of $ 800-820 per tonne francs, net deducting up to $ 775-795 per tonne fob, with sales expected to be these levels during August, subject to available volumes, the sources say.
Indeed, the Russian supplier allegedly told traders that its September commercial casting was limited by a recent incident involving the supply of oxygen to the oxygen shop. Although the company estimated the initial loss of production at less than 50,000 tonnes, with production restoring in a couple of days, it is understood that the availability of commercial slabs for September casting is practically closed. Another Russian supplier offers goods from the Baltic Sea at a price equivalent to US $ 820-830 per ton of key fob for Europe, another trader adds.
Ukrainian material also sells for $ 800-830 per tonne, depending on the destination country, with the option of casting in September. The Russian supplier, selling mainly from Russia’s Far East, is nearly closed for September casting volumes and is aiming for $ 850 /t CFR in Southeast Asia, where flat and semi-finished prices remain under pressure due to loosened Covid-19 restrictions. restraining activity. There are also many alternative supplies – Indian and Indonesian material is sold regionally, including China, at $ 750-780 per tonne cfr, but the quality and range of slabs is very narrow, traders note.
It is the latter that prevents Indian slabs from entering the Mediterranean market, despite the obvious attractiveness of their prices.
“By the time it is brought here and tested, it will probably cost more than what CIS offers: the quality and size are very limited and I don’t see Turkish businesses taking that kind of risk,” says the trader. Brazilian slabs, which currently cost around $ 930-940 per ton of key fob, are selling rapidly in the US and have not yet been offered in the Eastern Hemisphere, although this may happen with sales in the fourth quarter, when the US quota is the smallest, as traders note.