Posted on 20 Dec 2019
CIS slab export prices have stabilised this week, following higher-priced sales to Turkey last week and new sales to Europe this week.
European demand remains slightly subdued, but one Italian re-roller entered the market with a larger-than-usual enquiry, around 60,000 tonnes. The re-roller booked Ukrainian-origin material at just below $420/tonne cfr Italy, netting back to around $400/t fob Black Sea, Kallanish calculates. There were no sales of slab to Turkey during the past week.
With holiday season just around the corner, and in the wake of a major restocking in the Mediterranean basin and few other European destinations, the volume of enquiries is receding. Black Sea slab at current offer levels is still not workable in Southeast Asia, where prices do not exceed $420/t cfr. However, a Far East-shipping Russian producer closed its January-casting allocations, and is out of the market. Indian suppliers are also heard to have sold relatively small volumes of slab, having been offering at $425-430/t cfr.
Similar to hot rolled coil, slab prices have risen by $62.5/t in the last seven weeks, and consolidation is needed. The holiday period will facilitate a break in trading, which is likely to balance out any disbalance, sources say.
