The tradable price level for imported slabs in Asia has exceeded $500/mt CFR on the back of the strength of the HRC market where prices have come closer to $600/mt CFR.
Most buyers in Southeast Asia and China have been ready to pay $500-510/mt CFR for imported slabs, SteelOrbis has learned, up from the previous deals at $490-495/mt CFR. But offers from the major sellers have increased to much higher levels, to $530-540/mt CFR, taking into account the surge in HRC prices. No new deals have been reported so far, but most sources are sure that the new transactions will be closed at $520/mt CFR or above.
“The HRC market is very strong. Our export prices have reached $570-580/mt FOB, while in the domestic market we can sell to pipe makers at $580-590/mt ex-mill,” a Taiwanese re-roller said. Taking into account the re-rolling costs of $50/mt or slightly higher, $520/mt CFR could be accepted by customers who need to replenish stocks.
Deals for Chinese SA1006 have been done at $575-590/mt CFR in Vietnam over the past week, as reported earlier. Meanwhile, many exporters like Japan and South Korea have decided to increase offers to above $600/mt CFR due to strong market fundamentals for now.
The SteelOrbis reference price for imported slabs has surged to $510-520/mt CFR in Asia, up by $20-25/mt from a week ago.
