Asian slab exporters have been insisting on the higher offers voiced last week, and some further hikes are also not excluded, as the market has received some support from demand in the US and Turkey, while more active purchases are also expected from Europe in the near future. Also, the cheapest prices from Indonesia have disappeared for now due to some supply restrictions.
A deal for 50,000 mt of Vietnamese slabs was confirmed to the US market at $485/mt FOB, according to market sources. In addition, up to 140,000 mt of ex-Vietnam and ex-Malaysia HRC have also been traded to the US (the price is estimated at around $560/mt FOB), helping mills to close their October HRC order books.
In addition, the latest ex-Malaysia slab deal was done at a similar level of $485/mt FOB for Turkey. But with the current uptrend seen in Asia, offers from major slab exporters have already posted some further increases. “Raw materials are moving up quickly, specifically coal. So, slab suppliers don't want to put any offer on the table,” a market insider said. Indications for the next round of sales from China have been heard at $490-495/mt FOB, in particular.
There have been no fresh bookings for Asian slabs to Europe, with the latest offers for ex-China plate grade slabs at $560/mt CFR. “However, there are expectations that prices might rise, driven by the trend in raw materials and China's own HRC prices. Around mid-August, there was an offer from Turkey at approximately $550/mt CFR. But actual negotiations and price indications will begin next week,” a European source said.
The latest offer price for ex-Indonesia slab has been at $480/mt FOB for November shipment, up by $10/mt over the past ten days. “Dexin has some issues at the moment so deliveries are late, and November might be offered but maybe no orders will be taken,” a market source said. “I heard that the industrial area where Dexin is operating is suffering from a lack of freshwater due to the recent severe drought,” another Asian source said, confirming that the overall allocation from Indonesia for semis is limited.
In SE Asia, the lowest tradable level for Chinese HRC-grade slabs has been at $495-500/mt CFR, adding $10/mt over the week. “The market is up in terms of prices, but no change in demand,” a Chinese trader said, commenting on demand in the regional SE Asian import market.
