Sharp slab price hike seen in Asia amid shortage, strong HRC prices

Monday, 30 November 2020 17:53:25 (GMT+3)   |   Istanbul
       

Prices for slabs in Asia have continued to go up over the past week, supported by the shortage in the market and the strong HRC segment. A further rise is expected in the near future as there is still demand for imported slabs, while most factors, including the outlook in the HRC market, are positive.

According to market sources, a sale of 40,000 mt of ex-Russia slabs has been done at $540/mt CFR to Taiwan recently, up by $20-30/mt over the previous assessment. The main Russian supplier has already closed its order books for January-casting slabs. An offer of smaller tonnage of Indian slabs has been heard at $530/mt CFR, but the quality of the material has not been confirmed.

There is demand in Indonesia for imported slabs with offers from Asia and Latin America at $545-550/mt CFR, but no deal has been heard so far. The price idea from the customers’ side is below $540-545/mt CFR, but it will be hard to find a large volume of slabs in the market at a cheaper price, taking into account the current shortage, sources have said.

“Supply is very tight in the HRC market and prices are going up. I believe supply will come back to normal only in February,” a source said, explaining its positive outlook for HRC prices for the coming weeks. The deal prices for imported HRC in Vietnam have reached $605-610/mt CFR, up by $20-30/mt compared to a week ago.

The SteelOrbis reference price for imported slabs has increased by $25/mt on average from last week to $540/mt CFR in Asia.


Similar articles

Ex-Asia slab prices differ depending on destination, more declines expected

28 Mar | Flats and Slab

Prices stable for Brazilian slab export deals

26 Mar | Flats and Slab

Slab prices keep softening, though Asian flat steel market improves

22 Mar | Flats and Slab

Iran’s steel exports up 7.6 percent in first 11 months of Iranian year

20 Mar | Steel News

Prices decline for Brazilian slab export deals

18 Mar | Flats and Slab

Activity in global slab market starts to revive after decline in ex-Asia prices

13 Mar | Flats and Slab

ASEAN mills keep billet export offers stable amid latest sales including slabs, China still bearish

12 Mar | Longs and Billet

Prices unchanged for Brazilian slab export deals

11 Mar | Flats and Slab

Prices stable for Brazilian slab export deals

04 Mar | Flats and Slab

Slab prices down globally in Feb, but insufficient for buyers with further drops awaited

01 Mar | Flats and Slab