Asian slab suppliers have been targeting higher prices since last week and this week some sellers have been even more aggressive. But sales have been reported only to some destinations, like India. Though the main reason for the upward mood has been hope that the restrictions in the European HRC market will push up prices and demand for slab, buyers have been cautious for now.
Two deal for 100,000 mt in total were signed by the leading Vietnamese mill to an Indian steel mill at $490/mt CFR for shipment in April and May. One of the cargoes was sold just lately, while the other one was sold at least a week ago, according to sources. The Indian mill is planning maintenance, so it has showed more demand for import slabs than usual. The abovementioned price translates to around $460/mt FOB.
The main Indonesian mill has increased slab offers further by $10/mt this week to $475/mt FOB for June shipment, after the previous hike by $20-25/mt. And the current offers are for June shipment, as market sources said that the mill had managed to sell to Turkey earlier. The current offer is assessed by market sources as being unrealistically high.
In Europe, offers for ex-ASEAN slabs for HRC production have been at $500-510/mt CFR, while ex-China offers for plate production have been at $520-530/mt CFR. “But no one will buy slabs [for HRC production] at above $500/mt CFR. I would say this is the workable level for plate grade slabs,” a European source said.
In Turkey’s slab market, the price ideas of importers and overseas suppliers are quite far apart, though the higher import scrap prices and the recent upturn in the HRC segment are supportive of the uptrend in the semis market. Currently, import slab offer indications from Indonesia and Malaysia are at $505/mt CFR and $510/mt CFR, respectively, up from $485-488/mt CFR and $490-495/mt CFR seen around 10 days ago. According to sources, ex-Russia slab indications are evaluated at around $480-485/mt CFR, considering other alternatives, but for the non-sanctioned material. Still, according to some Turkish buyers, the workable level for the mentioned origins should be in the range of $475-485/mt CFR for Asia and around $460-465/mt CFR for Russia. “Turkey’s own slab production costs are at around $530-540/mt with the recent scrap price rises, while HRC is now at $580-600/mt domestically. So, the $500/mt level for slab is quite logical to me,” a supplier told SteelOrbis. In the meantime, Turkish slab importers cite suppliers not being under pressure at the moment as a reason for the high pricing, while stating that the current offer levels are not viable due to the unstable situation in the flat steel segments.
In Southeast Asia, last week, a deal for 10,000 mt of ex-Indonesia slab was done at $460/mt CFR Thailand for June shipment, while 20,000 mt of ex-Japan slab were traded at $470/mt CFR for April shipment. Another deal for 10,000 mt of ex-China TDC grade slabs was reported to South Korea at $473/mt CFR. Market sources said that the tradable level for slabs in Southeast Asia are at a relatively low level, but most buyers have “settled relationships, like Japan has a stake in a Thai mill,” a trader said.
