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.
