China has remained the main sales destination for imported slabs in Asia and beyond. Customers have accepted another $10-15/mt increase amid strong prices for HRC and plate in the local market.
Deals for imported slabs have been signed at $380-385/mt CFR China over the past week ended on May 18, compared to previous bookings mainly at $367-372/mt CFR a week ago.
The latest tender for 30,000 mt of Indian slabs has been closed at $373/mt FOB (about $385/mt CFR China). The tender was issued on May 14 and closed in just three working days, which indicates a good response, sources told SteelOrbis. Two deals for ex-Japan and ex-Indonesia slabs have been done at $380-385/mt CFR over the past week.
Good demand and higher prices for imported slabs in China have been due not only to an increase seen in the local HRC market, but also to healthy demand for plates. Local HRC prices in China have increased by RMB 165/mt ($23.2/mt) on average over the week ended May 18, while local plate prices in China have gained RMB 93/mt ($13.1/mt).
“Suppliers use China’s buying price as an indication for other customers, but it doesn’t work for any other Asian buyer,” a source from East Asia said. The price gap between offers and bids has increased to above $30/mt in East Asia, while some customers from Southeast Asia have said that the maximum workable price for them is $365/mt CFR.
