The bearish mood has worsened in Asia’s import slab market over the past week as prices for HRC in the region have continued to slide, while the 15 percent duty on finished steel imposed in India and the absence of the same measure on semis may provoke higher semis export volumes from India to Southeast Asia, sources have told SteelOrbis.
The latest deal for imported slabs in Asia was reported to Taiwan at $630/mt CFR for ex-Russia origin last week. This price was much lower than offers from Russia to Southeast Asia at $680-690/mt CFR heard in the middle of May. However, market sources said that the level is fairly reasonable, taking into account the latest slab sale to China at $600-605/mt CFR.
An indicative level for ex-Indonesian slabs is still reported at $740-750/mt CFR to Southeast Asia, but market sources are still cautious, waiting for prices for Asian slabs to touch $700/mt CFR soon. “Now local scrap is quite low. I think prices can be lowered further and people are scared to buy at the moment,” an importer from Southeast Asia has told SteelOrbis. Another ex-Indonesia slab seller has been offering at $760/mt CFR, sources have said, which is considered too high for now.
Moreover, market sources are waiting for more offers from India in the near future as, with the current export duty for HRC and other flats at 15 percent, integrated mills from the country will face a lot of difficulties in the international market. “Yes, slab sales from India are expected, but as the market [in Asia] is so bad, mills will not avoid price losses,” a trader said. The new price level from India is expected at around $700/mt CFR or so, but no firm offers have been heard yet.
The SteelOrbis reference price for imported slabs in Asia has been settled at $630-760/mt CFR with the midpoint at $695/mt CFR, down by $15/mt on average from last week’s range mainly due to the ex-Russia deal to Taiwan and bearish expectations.
