Latest News |
Henan Jiyuan I&S orders Danieli EWR to upgrade its bar mill 03 August 2020 |
INTERVIEW: JSPL's steel export thrust to taper amid Indian market recovery 03 August 2020 |
New slab grinder plant operating at Posco Pohang, Korea 03 August 2020 |
China July steel PMI slipped marginally to 49.2% 03 August 2020 |
CIS billet exports slow, but prices yet higher 03 August 2020 |
|
|
|
|
Slab prices continue to rise amid shrinking supply
Source: Kallanish
CIS merchant slab suppliers have been out of the market this week, with indications only available from the Ukrainian supplier, for August-casting material, Kallanish hears.
In the absence of CIS supply, a Turkish re-roller booked 20,000 tonnes of UK slab at $375/tonne cfr for September arrival. Meanwhile, the Ukrainian supplier is indicating to Turkish mills at $385/t cfr for late-September arrival, netting back to $370/t fob Black Sea.
A major Russian slab supplier is experiencing higher volume of demand from its European re-rolling mills and, having sold large consignments to China, is not yet offering August-cast material. China, meanwhile, continues to book available tonnages from Brazil and – last week – Mexico, with prices ranging from $395-400/t cfr, sources say.
Italy is understood to be booking Ukrainian slab in small quantities, at $370-380/t cfr, in a hand-to-mouth fashion. The future of the country's largest steelworks is shrouded in uncertainty, while the post-Covid-19 recovery is progressing slowly. These volumes are insignificant compared to traditionally booked tonnages, but are expected to increase towards October arrivals' booking time, traders say.
Despite the slower-than-expected recovery of the US market, and lower-than-usual intake of slab, Brazilian mills are sold out until September loading, and no new tonnages are expected to be offered this coming week. Although the market is quiet, the shortage of slab is being felt, supporting prices at current levels and enabling impetus for growth for August-casting bookings, participants conclude.