Posted on 05 Mar 2024
Market participants note unchanged slab price levels from Russian mills, anticipating significant price reductions are needed for deals to materialise, amid weak flat steel markets and falling prices in the EU and Turkey.
Offers for Russian-origin slab were heard unchanged at around $540-550/tonne fob Black Sea for sanctioned mills and at $565-570/t fob for non sanctioned, Kallanish notes. However, bids were heard at only $510-530/t fob.
Rumours of potential restrictions on semis exports from China circulated among market participants, yet failed to impact prices. However, the increasing share of Chinese slab in EU slab imports, amid the absence of EU trade defence measures, unlike on Chinese finished steel, could have consequences for EU buyers. They would be impacted in the event of China's exit from slab exports.
The EU imported 624,051 tonnes of China-origin HS code 72012 slab in 2023, according to Eurostat data, versus 366,665t in 2022 and only 1,770t in 2021 before war-related sanctions on Russia.
Interestingly, some Chinese exporters are said to be studying options to source low-emission electric arc furnace-based slab, in preparation for the EU’s full implementation of the Carbon Border Adjustment Mechanism.
China-origin slab into the EU was assessed at $600/t cfr.
For finished steel export prices, market participants reported sold-out April volumes and an absence of actual offers from most Russian producers, as it was too early to offer May-production material. For those mills which still had allocation for April, hot rolled coil offers were heard at $585/t fob Black Sea.
A deal for Russian HRC to Egypt was heard at around $615/t cfr, which would translate into around $575/t fob Baltic/Black Sea.
Source:Kallanish
