European slab prices have decreased in early April as Asian suppliers lowered their offers to European rolling mills. This price reduction is due to sluggish demand in the steel industry, forcing suppliers to adjust their prices to stay competitive.
Price Trends and Supply Conditions
In early April, Asian steel slab prices dropped to $520-$540 per ton (CIF), compared to $580-$600 per ton (CFR) at the end of March. Steel producers in Europe are concerned about weak demand. This has made it hard to accept higher prices.
Traders report that large stocks of slabs are sitting in Italian ports. This reflects weak demand, which is also impacting the pricing of new contracts. These surplus stocks are putting further downward pressure on prices.
Potential Price Changes by Q2
While demand remains weak now, things could change by the end of Q2. European flat product producers are looking to increase margins, especially after the European Commission imposed restrictions on imports. This may allow European suppliers to raise prices.
ArcelorMittal plans a €20 per ton price hike for June shipments. If buyers agree to this increase, slab suppliers may follow suit. However, higher prices could lead to an influx of imports, even with additional duties.
Global Slab Price Trends
Although European slab prices have fallen, prices in Japan and Brazil have remained stable. Japanese slab prices rose to $470 per ton FOB by April 4, up from $460 per ton on March 28. In Brazil, prices fell slightly to $490 per ton FOB, from $495 per ton at the end of March.
This trend shows the global nature of slab pricing. Prices fluctuate across different regions, including Southeast Asia and South America.
Impact of Anti-Dumping Duties on Steel Imports
The European Commission recently imposed anti-dumping duties on hot-rolled coils from Egypt, Japan, and Vietnam. The investigation, covering the period from April 2023 to March 2024, was initiated by the Eurofer Association. These duties may further affect steel product pricing in Europe.
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