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| Slab Prices In East Asia Dive To $420 FOB Level |
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Transaction prices of slabs in East Asia have plunged to a level of US$420/ton FOB for October-December 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 US$510/ton C&F and US$490/ton FOB for October-December shipments. Besides, CIS slab exports are said to have sold at around US$490/ton FOB for September shipments to East Asia. As a result, the benchmark of slab prices in East Asia was viewed as a level of US$490/ton FOB until recently for Q4 shipments. At present, though, Russian slab exports indicate a fall of nearly US$70/ton in prices. Besides, Russian pig iron exports are said to be allocated for the Middle East at prices below US$300/ton 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. There are signs that various users in Europe are holding back on imports of Russian steel products whose prices they believe are too high as various steel products are on offer from China to Europe at fairly low prices. It is a matter of attention whether slab prices will fall further in East Asia amid a high level of raw materials prices. There are forecasts that Russian steel exports will take time to sell into European markets, given a downtrend of steel prices in Europe. Accordingly, Russian slab exports at low prices are unlikely to let up in the immediate future, market observers forecast. 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 US$500/ton C&F and US$400/ton FOB. There is information that even a low of around US$460/ton FOB exists in offer prices of HR coil exports by China's small and midsize steelmakers. Those low prices of Chinese HR coils are reported for shipments to Europe as well, Chinese prices that are lower by nearly US$100/ton than what European steelmakers charge for their products. |
| last modified : Thu 29 Oct, 2009 [09:56] |
