Major suppliers of steel slabs have decided to increase their offer prices to customers in Asia, as the uptrend in the flat steel market has continued. Nevertheless, most buyers have been cautious in purchases after concluding a number of deals previously.
The SteelOrbis reference price for slabs in Asia has increased by $10-15/mt over the past week to $460/mt CFR, mainly based on increased offers. Most suppliers from Brazil, Russia and India have been offering slabs at $460-465/mt CFR to China and Southeast Asia, though the previous deals were done at $445-450/mt CFR. Buyers' sources have said that the needed volumes have already been bought and that customers are in a wait-and-see position in order to consider the market.
Offers from Southeast Asia, from Vietnam and Indonesia in particular, to China have been reported at $465-480/mt CFR, and no interest has been seen so far. These price levels have been assessed as too high and in general buyers are not in a position to purchase at the moment, sources have told SteelOrbis.
Higher prices for HRC and plates have supported slab sellers in their intention to increase prices further. In Vietnam, HRC deal prices have already reached $515/mt CFR and even some higher price level is possible for now, as the volume offered is somewhat limited. Last week, the tradable value was at $505-510/mt CFR.