CIS slab export prices continue climbing, although sales are scarce as buyers assess new higher offers. The Mediterranean market has increased activity, with more sales and higher prices, but Asia is quiet this week, Kallanish hears. 

In Turkey another 30,000-tonne lot was booked at $410/tonne cfr, netting back to $400/t fob Black Sea, thereby raising price expectations for other buyers. The deal means Italian buyers are now facing offers at a minimum of $420/t cfr Italy, traders note, adding that there will be sales imminently as availability is not great due to recent Chinese buying.

China has not been booking this week, but at bids of $425/t cfr CIS material is not workable and Brazilian slab mills are not offering. At the same time, this is the price level at which Iran will be successful, and traders estimate some cargoes are being contracted this week.

The leap of around $15/t in a week is considerable, and pushed by firming iron ore and scrap prices. But the strength of flat products markets is also evident in some regions, including CIS domestic, Turkish domestic and China domestic markets, while Europe is attempting to firm up. Firming freight rates are also contributing to CIS mills' higher offers. Sellers are unwilling to absorb the rise this time, compromising on fob prices and pushing buyers to ramp up bids, traders say.

As the US flats market continues to move sideways and procurement of feedstock is hampered, participants expect some Brazilian slab may become available in August. These volumes are going to be booked either by China or European mills, if they move quickly, sources note.