CIS slab export trade remains on the upward curve, as Turkey has booked what is perceived as its first of several slab lots at close to offer price, while Chinese demand continues.

Southeast Asia remains out of the market, having booked one CIS lot in the past two weeks, as its post-Covid-19 recovery continues being thwarted by new virus cases, Kallanish notes.

In the Mediterranean market, a 20,000-tonne Ukrainian lot was booked by a Turkish mill at $395/tonne cfr, for September loading and delivery, netting back to around $384/t fob Black Sea. The supplier has more slab to sell with similar terms, and several sources expect more bookings this week. Turkish mills need more slab, considering their flat products sales volumes.

Italian buyers did not book last week, having booked a relatively large lot a week prior at $400/t cfr ($383-384/t fob). However, there are expectations of further bookings for post-August-holiday arrivals, at prices slightly higher than the last booking.

As freight rates continue to rise, the China arbitrage is under jeopardy again. However, there is at least one Russian supplier with at least one large August-casting/September-loading lot, which may be destined for China.

China's bids were at around $413-415/t cfr towards the end of last week, but are seen as rising amid higher hot rolled coil prices to $420-425/t cfr this week, according to sources. A 50,000t cargo can still be shipped at around $30/t to China, when shipping in bulk through affiliated logistics companies, sources say.

One lot of Brazilian slab was booked in China last week at $413/t cfr, following an earlier booking at $408/t cfr a week earlier.

August-casting books are closing fast and September volumes are rather small from some suppliers. CIS slab prices are therefore likely to climb more on the golden season of restocking for autumn arrivals in Asia and the Mediterranean.

A second wave of Covid-19, perceived to have hit Asia currently, is still a threat in the European and Mediterranean regions come autumn. Small gains, however, continue with returning demand for third-quarter books, traders conclude.