China has started exporting slab to Europe, Kallanish notes.

Like other Asian mills, Chinese suppliers are rushing to export to this market because it is lucrative. "Now everybody who can sell slab to Europe will just sell it," a Jakarta-based trader says.

Last week, a Chinese mill is heard to have sold a 40,000-tonne parcel of coil-making slab to Europe at $855/tonne fob China, and another two Chinese mills also concluded three 40,000t cargoes each at $860/t fob, regional trading sources report. The May-shipment cargoes were sold to Italy, they add. A Chinese trader estimates that freight is $140/t. A regional trader hears that the final price was $1,030/t cfr Italy.

The slab export prices achieved in Europe are merging with hot rolled coil, Chinese traders say. These Chinese mills’ re-rolling HRC prices are prevailing at $870-900/t fob China, depending on mill. A Hong Kong trader says the concluded slab prices are possible in Europe. "There is a kind of panic in Europe since the EU announced sanctions against Russian steel," he adds.

A Taipei trader says the recent slab offers to Taiwan have dried up. “It seems all sources of slab are heading to the EU as a priority market,” he comments. This is simply because regional slab import prices are lagging behind.

A Chinese trader says he only received bids at $860/t cfr last week when he offered at $900/t cfr Indonesia and Taiwan. A Malaysian mill is also offering slab at $900/t cfr Indonesia. Current export offers for Chinese slab are now at $865-870/t fob China, the Chinese trader observes.

Previously, an Indonesian mill is heard to have sold re-rolling slab at $1,050/t cfr Italy on 11 March (see Kallanish passim).