Slab prices will rise

According to the latest data, prices for steel slabs in Asia have stopped falling and have already jumped. The fact is that the Mariupol Metallurgical Plant in Ukraine canceled orders for slabs for Southeast Asia and Malaysia. Although the operations of blast furnaces in the Donetsk region were not affected by the hostilities, coal supplies are only possible by road due to the interruption of the railway network.

Plant them. Ilyich canceled his export contracts for slabs. Bid prices for slab negotiations in Southeast Asia were raised by $ 5-10. In the Asian region, slab prices fell to $ 490 CFR in mid-July and to $ 475 CFR in early August. The decline in slab prices was due to the fall in iron ore prices.

However, the fact that slab prices are rising is not only due to the suspension of slab exports from Ukraine. Another factor is POSCO's plans in Korea to rebuild the blast furnace in January next year, which should reduce the supply of slabs. Krakatoa Posco in Indonesia has been told that it is not planning to be distracted by exports. PT Krakatau Steel receives slabs and steel plates from Posco Krakatau.

As the main source of semi-finished products, slabs may be lost and the supply /demand balance will shift. If prices for slabs rise, this will affect the price of hot rolled steel in coils and sheets for general use.