Though trading activity in the Asian slab market has been limited over the past week, higher prices will be accepted by customers in the near future as HRC quotations are steadily growing in the region and China is expected to continue importing slabs. Prices for slabs in Asia have been at $395-405/mt CFR, up $5/mt from the previous week. Firm offers have been heard from Brazil at $400/mt CFR Taiwan and above. CIS-based exporters from Russia’s Far East and from the Black Sea region have been targeting $400-405/mt CFR Asia.
It is expected that this price level will be confirmed in new deals as margins of customers have increased. Import HRC prices in Vietnam have added another $5-10/mt since early last week, reaching $455-460/mt CFR on Monday, November 25.
Moreover, HRC prices in China are still on the rise, and so mills will continue to import slabs, traders believe. On Monday, average local HRC prices in China have added another RMB 25/mt ($3.6/mt), reaching RMB 3,790/mt ($538/mt) ex-warehouse, according to SteelOrbis’ data. As a result, import slab prices at $400/mt CFR, including import tax, 13 percent VAT and re-rolling expenses, may bring about a $27/mt margin.
$1 = RMB 7.0397