Demand for slabs from CIS producers selling the material under long-term contracts remains very low in foreign markets. SE Asian, European and North American buyers prefer to delay purchases of the material produced in Q3, believing that suppliers will have to make reductions soon.
However, slab supply from the CIS is still limited. In particular, EVRAZ Group S.A. has already sold July output due to orders left from the previous months. However, the company has not started to offer August output yet, expecting SE Asian buyers to become more active. Russia’s NLMK and MMK are staying away from the market as well. Metinvest International S.A., having filled its July order book up, is selling its August output carefully, refraining from active offering.
As a result, July-August output of slabs from Ukraine''s Alchevsk SW is currently available to SE Asia at $640-650/t FOB Black Sea (some $690-695/t C&F). However, buyers are not ready to accept prices higher than $585-600/t FOB, which is about $630-650/t C&F, including freight rates.
The material from Alchevsk SW to North America is still offered at $650-660/t FOB Black Sea (some $675-690/t C&F), though bids are at $620-625/t FOB ($650/t C&F).
Buyers reportedly continue to negotiate. Market players expect new bookings to be made as early as the second half of July.
( Source: www.metalexpert-group.com)