International slab prices rise
2018-05-24 22:28:12
In October, global slab prices fell by 4% to 8%, mainly due to low demand from end-users and lower volume of cold-rolled mills. In early November, global slab prices remained stable. However, the prices of slabs in most regions have recently increased. The increase in slab prices was mainly attributable to the increase in raw material costs rather than the increase in demand for slabs. At present, the CIS slab black sea FOB price rose by US$10/t to US$515/t.
The current landed quotas for slabs in East Asia and Southeast Asia ranged from US$575 to US$585/t, however, there are also some transactions that are priced at US$565/t. Taking into account the local hot rolled coil price of 620 US dollars / t, cold rolling mill profits are quite low. Cold rolling mills only purchase urgently needed slabs, so the recent volume of slabs is relatively small. In addition, the slab inventory of most cold-rolled mills in November was sufficient for the demand before the end of this year, so it was far from the market and it took a wait-and-see attitude. However, the cold rolling plant will purchase the required slab for the first quarter of 2011 in mid-December, and it is expected that the volume will increase at that time.
Despite the recent sluggish international slab volume, the slab plant will not reduce the slab quotation for December. At the same time, the price of raw materials is expected to rise, and the freezing of the Black Sea will affect CIS slab exports, and supply pressure will further increase. These factors will support the rise in slab prices.
The current landed quotas for slabs in East Asia and Southeast Asia ranged from US$575 to US$585/t, however, there are also some transactions that are priced at US$565/t. Taking into account the local hot rolled coil price of 620 US dollars / t, cold rolling mill profits are quite low. Cold rolling mills only purchase urgently needed slabs, so the recent volume of slabs is relatively small. In addition, the slab inventory of most cold-rolled mills in November was sufficient for the demand before the end of this year, so it was far from the market and it took a wait-and-see attitude. However, the cold rolling plant will purchase the required slab for the first quarter of 2011 in mid-December, and it is expected that the volume will increase at that time.
Despite the recent sluggish international slab volume, the slab plant will not reduce the slab quotation for December. At the same time, the price of raw materials is expected to rise, and the freezing of the Black Sea will affect CIS slab exports, and supply pressure will further increase. These factors will support the rise in slab prices.