Following the recent increase in HRC and plate steel prices in Asia, slab suppliers have managed to achieve higher prices in deals over the past week. Buyers in Southeast Asia have been forced to accept higher prices for Russian and Iranian slabs, seeing an overall shortage of supply.
A few contracts for ex-CIS slabs have been concluded at $470-475/mt CFR Southeast Asia, which is $10-15/mt above the previous assessment in the market. As reported earlier, the previous booking for slab of the same origin was done at $455/mt CFR. A number of sources in Asia have told SteelOrbis that the overall offered volume in the market is limited. Sources have been waiting for the new offers from Brazil, which are expected to be at above $470/mt CFR, taking into account increased prices to the US.
Also, one of the major Iranian producers Khouzestan Steel Company (KSC) has closed a tender for 30,000 mt of slabs at $432/mt FOB recently. The shipment is scheduled for early November, while the sale destination is said to be Southeast Asia. The price level in the tender is higher compared to the previous trading level of $420-425/mt FOB, seen a week ago, according to sources. On CFR basis, the tender price is close to $465/mt, a few trading sources commented.
The SteelOrbis reference price for imported slabs in Asia has increased by $10-15/mt over the past week to $470-475/mt CFR.
Such an increase in slab prices in Asia has been supported by the steady uptrend in the flat steel market. For instance, imported HRC prices in Vietnam have added $10-15/mt over the past week to $530-535/mt CFR. And some further hike is possible, taking into account the limited offered volumes, especially from India.
