East Asian slab prices plunge to USD 420 per tonne level
Monday, 02 Nov 2009
TEX reported that transaction prices of slabs in East Asia have plunged to a level of USD 420 per tonne FOB for October to December 2009 period shipments in the wake of low offer prices at that level in slab exports out of the CIS including Russia.
Japanese slab exports to South Korea are under contract at price levels of USD 510 per tonne CNF and USD 490 per tonne FOB for October to December shipments. Besides, CIS slab exports are said to have sold at around USD 490 per tonne FOB for September shipments to East Asia. As a result, the benchmark of slab prices in East Asia was viewed as a level of USD 490 per tonne FOB until recently for Q4 shipments.
At present, though, Russian slab exports indicate a fall of nearly USD 70 per tonne in prices. Besides, Russian pig iron exports are said to be allocated for the Middle East at prices below USD 300 per tonne FOB. In this connection, Russian steelmakers have opted for a sudden turn to slab and pig iron exports at low prices in reaction to falling Russian steel exports to Europe, according to market sources.
Meanwhile, China's major steelmakers have their HR coil exports under negotiation for December shipments to Asian destinations. Prices on offer are seen as levels of USD 500 per tonne CNF and USD 400 per tonne FOB. There is information that even a low of around USD 460 per tonne FOB exists in offer prices of HR coil exports by China's small and midsize steelmakers.
