Buyers not ready for higher slab offers attempted by Asian mills, push for discounts

Thursday, 09 May 2024 17:24:34 (GMT+3)   |   Istanbul
       

Asian slab exporters in general have been targeting increases in May as they have started to offer for July shipments and in general, have been waiting for a stronger market after the recent holiday. Even though some market sources believe that mills in Southeast Asia will continue their attempts to hike prices, at the moment significant rises in deal prices are off the table.

Offers from ASEAN-based mills have been heard at $520-530/mt FOB, against $530/mt FOB in the official levels seen in late April, and some discounts are negotiable, but offers are still above the previous deal prices at $500-505/mt FOB last month.

In Turkey, Asian slabs are generally priced at $555-560/mt CFR for June shipment, which is not workable at the moment, since prices for hot rolled coil (HRC) at $620-630/mt ex-works in the local market and $590-610/mt FOB for exports. Some negotiations have been reported with a seller from Saudi Arabia, which had been absent with its offers for a while. The indications from a mill were standing at $547-550/mt CFR late last week, while Turkey’s price idea is evaluated at no higher than $525-535/mt CFR depending on the buyer. According to sources, sanctioned Russian material was booked at $475/mt CFR, with a further price increase of $5-10/mt at least. In the meantime, while there seems to be no price for non-sanctioned ex-Russia steel slab, some sources estimate the possible indication as no higher than $520/mt CFR.

Also, Chinese slab exporters have been cautiously bullish after the holiday. The offers for plate-grade slabs from China have been at $590-610/mt CFR Europe for July shipment, versus deals at $585-590/mt CFR in the second half of April. “China is using even minor factors to increase prices, from a slight rise in iron ore prices to a somewhat better mood in the European flat steel market,” a source said.


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