Posted on 14 Apr 2021
Slab offers have jumped in East Asia over the past month, Kallanish notes, reflecting the surge in the hot rolled coil market.
Slab prices for certain origins have risen by up to $100/tonne month-on-month to above $800/t cfr Southeast Asia. But others say they do not see offers from these sources because the European market is more attractive.
A trader says Russian slab offers are now priced at above $800/t cfr Indonesia, up from $715/t cfr in mid-March. The last slab order was booked last month at $660/t cfr Indonesia for Oman-origin slab, he adds.
There are no offers now from Russia or Brazil, some others say. This is because the regional market cannot compete with much higher European buying prices. In Thailand, offers for Iranian slab are now at $710/t cif, up from $655-660/t in mid-March, while Brazilian slab is offered at a minimum of $800/t cfr, a Thai trader says.
China has been importing slab, Chinese trading sources say. A Chinese trader says the last booking price was $720-730/t cfr China around 1-2 weeks ago. But another trader says he has not heard of any recent deals this month because Russian and Brazilian slab prices have gone up sharply and are no longer attractive for Chinese importers. "I think speculative demand is increasing,” he says.
Meanwhile, an Indonesian blast furnace mill, which is actively exporting billet and wire rod in the region including China, has started exporting slab. A Chinese trader hears the mill started offering slab to China since last week and believes there were export deals.
"Several traders tried to generate bids at $710-730/t cif Thailand for the [Indonesian] mill’s slab since early last week,” a Bangkok trader says. The traders offered a wide gap in prices because they were trying to get a firm bid in order to negotiate with the Indonesian mill, he adds. But he believes that these prices are no longer available because the market has firmed.
“Nippon Steel’s HRC was offered last week at a cool $1,000/t,” a Jakarta trader says. This means that slab will continue to increase sharply, he says.
Source:Kallanish
