Asian slab prices have been fluctuating in a limited range for over a month amid limited demand and no urgent need for sales from the suppliers' side. Nevertheless, some exporters have been targeting a small increase since late June, seeing a better mood in China.
The latest offer for ex-Indonesia slabs has been at $435/mt FOB for October shipment, up by $3/mt since early this week and $5/mt higher than the level seen in mid-June for August shipment. “Their HRC sales are better [in Europe]. Demand for slabs is weak,” a trader said. Another source said that the higher prices in the slab segment are only “driven by China’s mood, not demand.”
Ex-China slab offers, but only for HRC production, have been heard at the stable level of $430/mt FOB mainly amid inactive sellers, who prefer other products like billets or HRC.
Offers for ex-Vietnam and ex-Malaysia slabs are still heard at $450-460/mt FOB and some sellers may still have material for end-of-August shipment. But there has been very limited demand at the current levels.
Imports to India
The only rather high deal was reported last week, done by the leading Vietnamese mill to India at $470/mt CFR for 20,000 mt of slabs for end of August-September shipment. This price translates to $445-450/mt FOB, according to some sources, as it will be shipped with other products, but some believe that the freight is higher at up to $35/mt. There has been a rumor that the Russian non-sanctioned mill sold 30,000 mt of slabs to India as well, but the price level rumored at $425/mt CFR has been strongly denied by market sources and the seller as being too low and unreasonable.
Imports to Europe
In Europe, the latest ex-China plate grade slab offers have been at $510-520/mt CFR, but sellers may agree to go down to $500-510/mt CFR. But even this is not triggering demand, and most bids are below the $500/mt CFR mark. Offers for ex-Vietnam, ex-Malaysia and ex-India slabs are at $500-510/mt CFR, while the lowest offer is for ex-Indonesia slabs at $470-480/mt CFR. However, since there is very limited demand for HRC grade slabs in Europe, buyers are not interested.
Imports to Turkey
In Turkey, the interest in import billet, particularly billet from Asia, is low, taking into account the high prices coupled with long lead times, while buyers are aiming to minimize risks amid unstable and uneven HRC prices. Offers from Malaysia have been reported at $490/mt CFR for end-of-August and September shipments, which is considered too high for the current market conditions. Indonesian offers remain indicative at $467-470/mt CFR for September shipment, also not of much interest to Turkish buyers. In fact, sources believe that ex-Russia offers have the most potential to attract their attention since the material is the lowest-priced and for the shortest delivery term due to geographical proximity. According to sources, a non-sanctioned Russian mill is targeting $455-460/mt CFR for end-of-July and August shipments, while some of the buyers seem to be aiming for $450/mt CFR. In addition, the levels of $440-445/mt CFR have also been reported in the market, most probably coming from a sanctioned Russian mill, with no deals confirmed. “Turkey’s own slab production costs are around $510-520/mt, so theoretically import slab is a good option, but Asian deliveries are for October. It is hard to predict the risks,” a source told SteelOrbis.
Imports to Asia
In Asia’s import slab market, the lowest price is still coming for slabs from Russia’s Far East - at $430-435/mt CFR, which is almost stable since mid-June. For Asian origin slabs, the tradable level is $450-460/mt CFR, but, following previous sales, buyers have sufficient inventories.