Prices for imported slabs in Asia have increased over the past week owing to continuing sales to China. Brazilian suppliers have remained the most active.
Two deals for 40,000-50,000 mt each of ex-Brazil slabs were signed at $391/mt CFR and $395/mt CFR China last week, while the previous transaction levels were at $377-385/mt CFR, SteelOrbis was informed. There has been a report of a sale of Ukrainian slabs also at above $390/mt CFR, but the seller denied the deal was done. Offers for slabs from Russia have been heard at $400/mt CFR and the workable level has been assessed at $395/mt CFR, but the allocation for August shipments has been limited.
Two Brazilian mills are in negotiations with Chinese customers, aiming to sell two big lots for August shipment. The offer price level has hit $400/mt CFR. Some sources said that this level has already been reached in the contract, but this has not been confirmed by the time of publication.
The situation in the slab market in Asia has depended on the HRC price trend. Last week, import prices for HRC in Vietnam increased by $10-15/mt to $425-435/mt CFR. Most market players believe that China’s slabs demand will be maintained in the near future.
Rising iron ore prices have been one of the important reasons behind the slab price increase. Price for fines with 62 percent Fe content surged by $4.5/mt to $105.3/mt CFR on June 8, according to SteelOrbis.
