China exports slabs to Europe

Like other Asian manufacturers, Chinese suppliers are rushing to export to the European market because it is profitable. “Now anyone who can sell steel to Europe will rush to do so,” says a trader from Jakarta.

Last week, a Chinese plant sold a 40,000-ton shipment of labs to Europe at $855/ton FOB China, and two other Chinese plants also closed three shipments of 40,000 tons each at $860/ton FOB, regional trade sources say. Cargoes with May delivery were sold to Italy, they add. According to a Chinese trader, the freight is $140 per ton. The regional trader hears that the final price was $1,030 per ton, Italy.

Chinese traders say export prices for slabs achieved in Europe are merging with prices for hot rolled coil. Prices for re-rolling hot-rolled steel at these Chinese mills are dominated by $870-900/t FOB China, depending on the mill. A trader from Hong Kong says that the indicated prices for slabs are possible in Europe. “There is some panic in Europe after the EU announced sanctions against Russian steel,” he adds.

A Taipei trader says recent slab offers to Taiwan have dried up. “It appears that all slab sources are heading to the EU as a priority market,” he comments. This is simply because regional slab import prices are lagging behind.

The Chinese trader says he received bids last week for $860/tonne francs, while he offered Indonesia and Taiwan for $900/tonne francs. The Malaysian plant also offers slabs at $900/t in Indonesia. Current export offers for Chinese slabs are now $865-870/t fob China, a Chinese trader notes.

Earlier it was reported that on March 11, one of the Indonesian mills sold slabs for re-rolling at a price of $1,050 per tonne in Italy