India’s Slabs Export Up by 22% in Jul’16

SteelMint has heard that Indian steel manufacturers have become quite active in slab export market especially since last three months from May’16.

In Jul’16, country’s slabs exports stood at 28,237 MT against 23,175 MT in Jun’16. Majority of country’s slabs exports in July month were directed towards South Korea on account of maintenance work being carried out at Hyundai’s blast furnace in Danjin, South Korea.

On 12 May, out of the three blast furnaces in Danjin, temperature in one of the blast furnaces dropped below the malting point of steel due to problem in heat transmission inside the furnace. Because of this the daily steel output of blast furnace dropped to 30% of total output at 3,000 tonnes a day.

In terms of slab production the company has lost 1,50,000 to 2,00,000 tonnes in past one and a half month.

India and Global Export Offers

India’s slab export offers this week have registered a fall of USD 10/MT against previous offers and stand at USD 320/MT. The current offers are being heard for Malaysia. However, there is less buying interest at this rate as overseas buyers are expecting a price of USD 310/MT from Indian exporters.

CIS-origin slab offers are currently being heard at USD 310-320/MT, FoB Black Sea, down by USD 10/MT against last offers that were heard in Jul’16. Slabs offers from Latin America are assessed at USD 305-315/MT, FoB basis.

Brazil is one of the largest slab exporters in the world.The country had exported a total of 2.92 MnT of slab in the first six months of 2016, slightly higher than the 2.86 million tonnes it shipped out in the first half of year 2015.

Although, not many fresh offers for slabs were heard from Brazil in July, Brazil’s CSP (a joint venture between POSCO, Dongkuk and Vale), have signed many deals for slabs export in Asia which has forced various other exporters of other countries also to lower down their export prices. Current slabs offers from Brazil are being heard at USD 320/MT, FoB Brazil.

Slabs Prices on 8 Aug’16