Imported slab prices into Southern European countries are forecast to decline slightly in line with price weakness for some raw materials and general international steel market uncertainty, Kallanish learns from slab buyers.

Slab is now at $470-480/tonne fob from the CIS region but this is seen decreasing by $10/t or more. The current price however is stable compared to September. Southern European plate suppliers meanwhile are struggling to increase prices. These have fallen back in Italy by €10-15/t ($11.5-17.2/t) month-on-month on low demand and negative market sentiment, sources say.

The slab market is suffering globally due to the effect of the ending of South American quota for the US market. Slab trading between South America and US will resume in November for delivery in 2019.

Ownership changes in the European flat products market could mean a different demand dynamic for slab supply in 2019. This could have repercussions and mean potential shortages in market supply, generating more competition for merchant slab.

Chinese and Brazilian material is too expensive at over $510/t cif, sources suggest, and with Iran out of the market following US sanctions, Iranian slab is not being offered to Europe. The only exporter to Southern European countries remains the CIS region, Kallanish notes.