Asian buyers have increased their bid prices for import slabs over the past week and higher prices have been fixed in the latest deals. Most market sources expect further increases amid strong HRC prices and returning demand for slabs from China.
A deal for 40,000 mt of ex-Russia slabs has been done to Southeast Asia at $850/mt CFR over the past week, up by $30-50/mt compared to the previous week’s assessment and $55-60/mt above the previous deal for slab of the same origin reported in the market two weeks ago, SteelOrbis has learned.
“We are watching the market and will buy [slabs] later, but all prices are definitely higher now amid the upturn in HRC,” an Asian source said.
Apart from Southeast Asia, Chinese importers have started to be more interested in slab purchases. Though fresh deals have not been reported so far, bids from China for Asian and Russian slabs have gained to $840/mt CFR, from just $750-760/mt CFR about ten days ago.
Prices for slabs from Iran have also continued to go up. “Prices [for slabs from Iran] we thought to be on CFR basis are more likely to be on FOB basis,” one trader said. The target price level of one of the major Iranian mills has been heard at $750/mt FOB, while some sources believe the new prices may even reach $770-800/mt FOB this week.
Continuous strong rises in the HRC segment in Asia have provided major support for slab prices. The deal price level for HRC in Vietnam has increased by $15/mt last week to $950-955/mt CFR and negotiations have been held at $960-970/mt CFR and above lately.
The SteelOrbis reference price for import slabs in Asia has reached $840-850/mt CFR, up by $30-40/mt in the past week.