The Tex reported that the market prices of steel slabs in the Asian area are dropping drastically.

Till now, its prices were keeping the lower level but they were maintained in the range of USD 650 per tonne to USD 680 per tonne C&F. However, its recent prices become the low USD 600 per tonne s C&F which decreased by more than USD 40.

In this background, it is said because Korean mills like Hyundai Steel have launched export of slabs at cheaper prices. There is an information from a Korean source that POSCO as well will export slabs from October.

From the middle of September, the market prices of hot-rolled steel coils, steel plates and so on have begun to become marked. Even if selling prices are cut down, there is no customer to buy, and then further price reduction is needed. Under the circumstances, a worst case has happened that the mills fall into the vicious cycle, as a result, only a cheaper price offer is left, and any contract cannot be concluded. The similar phenomena are said to be happening for slabs as well.

The Korean mills' export aggressiveness for reduction of prices is caused by depreciated won. Due to depreciated won, as even if the mills decrease their prices in dollar somewhat, their proceeds in won are not changed, and therefore, they decreased their prices of various steel items by almost $30 to 40 in order to seek quantity. Price down of slabs as well is not exceptional. It used to be no remarkable for the Korean mills' aggressiveness for slabs but most recently, it affects largely its market. However, won is returning to approximately $1=1,150 at present. It is unchanged that prices of raw materials keep the higher level till January arrival of next year. Therefore, the Korean mills' offensive of slab export at cheaper prices will be momentarily corrected.

(Sourced from The Tex Reports)