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| Brazilian, Australian Slab Offers To Asia At $350 FOB |
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Offer prices are estimated at a level of US$350/ton FOB in Brazilian and Australian integrated steelmakers' slab export negotiations under way on shipments to Asia in the January-March quarter, it was learned in Tokyo Thursday. As a result, the prices on offer this time are viewed as close to half the final level of agreed prices in Brazilian and Australian slab exports to Asia for October-December shipments last year. As of September last year, Brazilian and Australian prices of slab exports to Asia were reported as a level of US$1,050/ton FOB. They were said to be a level of US$850/ton FOB at first for October-December shipments, down US$200 from a quarter ago. Then, the Brazilian and Australian steelmakers were believed to have renegotiated their supply contracts with a price reduction of US$100 or US$200 in the wake of a South Korean customer's request for a review of prices. By comparison, slab export prices of the CIS stood at a level of US$1,055/ton FOB in September last year. They declined to levels of US$750/ton FOB in October and US$400/ton FOB. At present, there are no reports on new CIS offers of slab exports to Asia. Meanwhile, Asian customers, mainly South Korean users, look set to reject the slab prices on offer from the Brazilian and Australian steelmakers for January-March shipments, according to market sources. It is understood that the customers have little leeway for new slab imports because they have imported slabs in stock in large quantities, slabs bought at high prices. Given a price of US$350/ton FOB for slabs, the material will be used to produce HR coils for export at a price level of US$400/ton FOB and CR coils for export at a price level of US$500/ton FOB as far as Asian steel mills are concerned, experts point out. As a matter of fact, bids of around US$500/ton FOB still exist for CR coils. In this connection, it is only Chinese steelmakers who can meet those bids for CR coils in export markets, which indicates invincible competition to South Korean steel rerollers and Japanese integrated steelmakers. |
| last modified : Wed 21 Jan, 2009 [10:28] |
