October 12, 2008

Global slab prices expected to reach USD 750 in Q2

Market sources are showing that the export price of steel slab in the Q2 is likely to be USD 750 per tonne up by about USD 70 per tonne from the previous quarter.

Price negotiations for steel slab supply for the Q2 haven’t been launched yet since Brazil Steelworks hasn’t started to make offers to Asian and other countries and what’s more, the furnace of ArcelorMittal Cleveland plant in the USA was damaged and in Mexico’s Lazaro Cardenas plant, conflict broke out between the owners and employees.

Therefore, ArcelorMittal will have to face supply limits on steel slab it means that this group will reduce its slab export allocation. The tight supply situation in the second quarter will surely push the slab export price to higher levels.

(Sourced from YIEH.com)