Over the past week, major suppliers in the Asian slab market managed to increase deal prices again owing to persisting demand from China. Subsequently, the number of offers to China and Southeast Asia has declined - Brazilian mills have switched their focus to the US, while Russian exporters are sold out.
A deal for 40,000 mt of ex-Brazil slabs has been signed at $405/mt CFR to China over the past week. Moreover, a similar volume of Russian slabs from the Black Sea region has changed hands at the same level. The deal prices have gained $5-10/mt compared to the level seen a week ago. Higher prices for plates in China and firm demand have allowed customers to accept a further slab price increase, sources have said.
Offers for Southeast Asian slabs to China have been heard at $415/mt CFR for August shipment recently. Suppliers from Southeast Asia are not paying two percent import duty, and so this price level is equivalent to about $407/mt CFR for non-Southeast Asian slabs.
Customers from East Asia and Southeast Asia have been suffering from the high offer prices, as current HRC prices have not been rising very fast. The last booking of imported slabs to Taiwan was at $400/mt CFR or slightly above, and bids are unlikely to increase above this level in the near future, a local source has told SteelOrbis. The export bookings of August shipment HRC from Taiwan have been at $430-440/mt FOB. Local prices in Taiwan have increased by $10/mt and are equivalent to $450/mt ex-works.
