Prices for import slab prices have increased further in the Asian market over the past week, supported by the uptrend in the flat steel segment. Since the outlook in the HRC market is still positive, suppliers are targeting a further price increase for slabs.
Over the past week, a deal for imported slabs has been rumoured at $700/mt CFR, which is $20/mt above the previous deal two weeks ago. Though the details of the sale have not been disclosed, sources have said that this is “a fair price” in the current market conditions. For future sales, Asian and Russian suppliers will target around $720/mt CFR, according to market sources, while an Iranian producer is targeting some $670/mt FOB or up to $710/mt CFR Asia in its next tender.
The better outlook and the rising prices for flat steel products in the Asian region have been supporting the slab market. In Vietnam, the import HRC price level has reached $760/mt CFR in the latest deals for ex-India material and for some small volume of ex-China SAE1006 coils, reflecting an increase of $15-20/mt from early February. The local price level for HRC in the Taiwanese HRC market is also slowly increasing closer to the $800/mt mark. Moreover, to some export destinations, some Taiwanese mills have already managed to sell at $790-800/mt FOB.
The SteelOrbis reference price for import slabs in Asia has increased to $700-710/mt CFR, up by $10/mt compared to a week ago.