Prices on regional slab markets fell by $20–30 per tonne in June

In June, most regional slab markets saw a fall in prices of $20–30 per tonne. In particular, the reference export price for Brazilian slabs fell by $20 last month to $580/t (FOB). Following a period of high prices that had lasted since March, a correction was inevitable.

Brazil

According to SteelOrbis, the reference export price for Brazilian slabs fell by $20 in June to $580/t (FOB). Despite this further decline, prices remain close to two-year highs. This is driven by strong domestic and export demand.

At the same time, exports of Brazilian slabs are highly volatile. In May, the figure fell by 43% month-on-month to 391,000 tonnes, following a 2.3-fold increase in April. The sharp drop in exports in May is linked to a surge in domestic demand: locally produced cold-rolled and coated flat steel are replacing imports from China following the introduction in February of anti-dumping duties on these Chinese products.

At the same time, reserves for the domestic market remain in place. According to the Brazilian Steel Manufacturers’ Association (IAB), in May local companies increased production of semi-finished products by 33% compared with April – to 792,000 tonnes, of which slabs accounted for 751,000 tonnes. The volume of semi-finished steel production for January–May rose by 6% year-on-year to 3.5 million tonnes.

Turkey

Average FOB Black Sea prices remained stable at $515/t for most of last month, but fell slightly at the end of June. The main reason for the correction was a cooling of demand from Turkish steelmakers, which, in turn, was linked to falling scrap prices and weak demand for rebar.

According to the Turkish Statistical Institute (TUIK), slab imports into Turkey rose by 32% month-on-month in May to 370,000 tonnes. The average import price stood at $487/t. The largest suppliers in May were Russia (247,000 tonnes, down 5% year-on-year) and Malaysia (52,000 tonnes, up 8% year-on-year).

Despite rising prices, local producers are switching to using their own raw materials. Since the start of this year, the Turkish domestic market has seen a significant increase in production – for the period January–May, it rose by 20% year-on-year -to 6.7 million tonnes.

Other markets

In other regional markets, prices trended downwards. Prices for Chinese slabs in Indonesia fell in June to $510–515/t on a CFR basis, compared with $530–535/t in May. According to Kallanish, the deterioration in the local market is due to the weakening of the Indonesian rupiah against the dollar, prompting suppliers to seek to sell their products to Europe or the US, where prices are higher.

Asian slabs have been steadily falling in price since the start of June due to weak demand both in China and on the global market. The price decline continues against a backdrop of uncertainty in the EU, a reduction in supply and a lack of supportive factors. Trade in export products remains weak, and sales are sporadic.

Iran lifted the temporary ban on steel slab exports, which had been introduced due to a shortage of material on the domestic market, with effect from 30 May. At the same time, market participants do not understand the logic behind this decision, as the Khouzestan Steel and Mobarakeh Steel plants, which were damaged during the war, have still not resumed operations, and the shortage of slabs persists. It should be noted that, according to the Iranian Steel Producers Association (ISPA), in the Iranian calendar year ending 20 March 2026, slab production rose by 10.2 per cent year-on-year to 12.4 million tonnes.

At the same time, average slab prices in Japan fell by $30 in June to $520/t, following a rise of $70 per tonne in April.

It should be noted that in May, all regional slab markets saw price increases, which mostly ranged from $5 to $20 per tonne. The reference export price for Brazilian slabs fell by $5 in May to $600/t (FOB). This marked the first decline in eight months.