Slab prices have improved slightly again over the past week in Asia owing to higher HRC prices in the region. The focus of slab suppliers has remained on China, but demand from other customers in Asia also exists.
The tradable value for imported slabs in Asia has increased to $410-415/mt CFR from $405-410/mt CFR previously, sources confirmed. A cargo of ex-CIS slabs was booked in this range to one of the Asian buyers outside of China last week.
In China, the latest confirmed booking was done from Brazil at $408/mt CFR a week ago. Moreover, there have been reports that a new contract has been signed at $415/mt CFR, but all major Chinese traders have denied this, however, confirming that offers from most major suppliers are at this level or higher at the moment.
“Sentiment is the HRC market is better now, so bids have increased to $410/mt CFR,” an Asian source said. Suppliers on their side are targeting not lower than $415/mt CFR.
Stronger HRC prices in Asia after China resumed purchases have been the main driver of slab prices. As SteelOrbis reported earlier, the majority of deals for about 150,000-200,000 mt of Indian coils were done at $445/mt CFR, but at least one deal for a medium volume was heard at $450/mt CFR late last week. In such a situation, Taiwanese exporters have increased their offers to $460/mt FOB, reportedly having bids at $465/mt CFR from Vietnam. Japanese and South Korean suppliers have started to ask about $470/mt CFR in Vietnam and China. Local HRC prices in China have posted another increase on Monday, July 13, moving up by RMB 30/mt on average or by about $4/mt, SteelOrbis has learned, bringing hope that the import activity will continue in the near future.