Indian Manufacturer to Export 30,000 MT Slab to Southeast Asia: Sources

With the increased steel production coupled with sluggish demand in domestic market, Indian manufacturers are opting for slab exports.

SteelMint has heard from its market sources that one of the Indian steel manufacturers has recently concluded an export deal for slabs for South east Asian country at the rate of USD 330-340/MT, FOB India basis.

As per provisional customs data, in May’16, India exported about 30,000 tonnes of slabs. Out of this, 15,000 tonnes of slabs was exported by SAIL to Italy and the exported consignment was of stock lot material. The average export rate was USD 308-310/MT.

The remaining 15,000 tonnes of slabs was exported by JSW Steel to US. However, this entire export was for pipe mill division of its own steel plant located in Texas, US.

As per the provisional customs data, till 10 Jun’16, SAIL has exported additional 10,000 tonnes of slabs to Italy.

Global Slab Offers

Slab offers from CIS countries have registered a fall of USD 20/MT against previous week and current offers are assessed at USD 320-325/MT, FoB Black Sea. This fall was was due to sluggish demand and bearish sentiments in finish flat steel market.

No fresh offers for slabs were being heard from Brazil since past few weeks and last offers heard were at USD 400/MT, FoB basis. However, this week, offers from Brazil have also plunged and are currently assessed at USD 340/MT, CFR Turkey.

Slab offers from Latin America have also fallen by USD 20/MT this week and current offers are assessed at USD 320-350/MT, FoB basis.

Slab (220-250 mm) Prices as on 21 Jun’16