Indonesian and Vietnamese slab suppliers raised their selling prices for EU customers to $500/t SFR in mid-March, according to SteelOrbis. In mid-February, offers were at $480-485/t CFR Europe. During this period, Chinese producers raised prices for overseas shipments by $20/t, to $520/t CFR. In Italy, imported slabs rose from $490-520/t to $500-530/t CIF.
The price of deliveries increased after the European Commission announced a revision of protective measures for imports of hot-rolled coils. According to market participants, the reduction in quotas will reduce overseas deliveries to the EU. In turn, this will help increase the output of rolled products for European plants. In anticipation of increased demand from their side, Asian slab producers responded by raising their selling prices.
At the moment, the potential for price increases has been exhausted, and producers are waiting for a response from the market. China’s Baosteel, after raising prices by $14/t in March, kept its selling prices for April at the current level for all types of flat products.
The rise in imported slab prices is pushing up European prices for flat products.
«Considering slab prices at $500–520/t CIF, €650/t FOB for thick plate steel is not a luxury, but a necessity to ensure breakeven,» a source at the plant told Fastmarkets.
Brazilian slab suppliers for deliveries to the US maintained their offer at $505/t FOB by mid-March. This is in line with the quotes observed at the end of February. In January, slab imports to the US grew by 68.5% compared to the previous month and 19% in annual comparison, to 602 thousand tons. Of these, 2/3 of the volume came from Brazil.
As reported, the European Commission has set temporary anti-dumping duties on hot-rolled coil from Egypt, Japan and Vietnam in the range of 6.9-33%. They will come into force on April 7. No signs of dumping were found with respect to Indian products.
Courtesy : https://gmk.center/
