Demand for imported slabs in Southeast Asia has remained limited over the past week and most major customers have been either looking for cheaper sources or have been exiting the market entirely.
In particular, a deal for 40,000 mt of ex-Iran slabs has been reported as having been done at $525/mt FOB lately, with the material destined for Thailand. The CFR price is assessed by market sources at around $570/mt CFR. “This price is reasonable. Most customers are considering prices only far below $600/mt CFR,” a market source said. A week ago, the lowest tradable level in the Southeast Asian market was assessed at $590/mt CFR for ex-Russia material.
No fresh deals have been reported for ex-Russia slabs in Asia so far, though the main mill in Russia’s Far East region has been heard ready to provide $585/mt CFR, while the workable level has been assessed by market sources at hardly above $575/mt CFR.
The highest level has been seen for ex-ASEAN slabs, as producers have not been interested in active sales in the region after the last trades at higher prices to Europe. Offers from the ASEAN region have been at $620/mt CFR, stable from last week. “If the HRC price in Vietnam is at $640-650/mt CFR, slabs could not be above $600/mt CFR,” an Asian source commented.
The SteelOrbis reference price for imported slabs in Southeast Asia has settled at $570-600/mt CFR with the midpoint at $585/mt CFR, down by $20/mt over the past week.
