International slab market price is strengthening. The current market price is C&F US$ 540-550 per tonne in Asia for September shipment while slab makers are showing strong selling stances due to surging costs for iron ore, coal and ferrous scrap. Slab makers are likely to offer C&F US$ 600 for October shipment.
Global slab market is estimated at about 30 million tonnes per year including South America, Russia, Ukraine and Japan. The market price had surged since the beginning of 2010 to reflect tight material supply while weakened for July-September along Chinese steel market decline. In recent years, price competition became severer because Russian steel makers entered Asian market through Black Sea route. Market expectation is rising for slab price up bound to reflect rising iron ore, coal and ferrous scrap prices. Russian slab makers seem raising their offer price by US$ 20-30 per tonne for October shipment, according to Japanese large dealer source. Higher slab price would push up steel product prices for plate or hot coil.Japan Steel Scrap Composite Prices (Sangyo Press)
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