Prices of Asian slabs have risen in January after a few months of rather stable pricing, amid support from active sales to regional customers, as well as rising prices in Europe.
Ex-Asia slab prices have reached $465-475/mt FOB in mid-January, increasing by $10-20/mt over the month. Some Asian suppliers have even stopped offering after rather active sales of slabs and HRC in the region. The official offer price for April shipment from the major Indonesian mill stands at $465/mt FOB, rising by $10/mt compared to last week.
Ex-ASEAN slab sales have been active to Southeast Asia in January at rather stable prices, but these sales have significantly lowered the inventory pressure on mills and enabled them to raise offers.
In early January, the Indonesian mill sold March shipment slabs to a trader at $445/mt FOB. Also, a week ago, 60,000 mt of Vietnamese and Chinese HRC grade slabs were sold at $457-460/mt CFR to Indonesia. Meanwhile this week a deal for another 50,000 mt of Vietnamese slabs has been discussed at a similar price to the same sales destination. One of the main reasons for higher sales of Asian slabs to Southeast Asia has been the reduced supply from Iran, which was usually attractive in Southeast Asia due to its price advantage. Also, some sources have reported ex-ASEAN HRC sales to Asian - e.g., South Korean - and more distant markets, so now some ASEAN mills will be very cautious as regards placing offers for slabs and they are expected to offer not below $460/mt FOB for Asian outlets and $475/mt FOB for other outlets.
In the European market, most offers for Chinese and Vietnamese plate grade slabs have been at $520/mt CFR, versus deals done in December at $500-515/mt CFR. No discounts are expected anytime soon. “The estimated CBAM costs for them [first tier mills from China and Formosa] are €60-80/mt, but, due to the risks, a higher premium is sought for all final prices,” a European source said.
Turkey has been inactive in terms of slab imports, with some offers for Asian HRC grade slabs at $490-500/mt CFR, while Russian origin slabs from two major mills (sanctioned and non-sanctioned) are at $440-460/mt CFR with discounts possible.
