Trading in the import slab market in Asia has been high over the past week with China showing steady interest in purchases. Nevertheless, bids have fallen by around $30/mt from $750-760/mt CFR seen in the middle of September to as low as $720-730/mt CFR.
Last week, an Indonesian seller traded a cargo of around 20,000 mt of slabs to China at $740-745/mt CFR. In addition to this, Brazil has returned to the Asian market. One large supplier has traded a large parcel at $750/mt CFR also to China slightly earlier. Also Iranian seller closed a tender at $678/mt FOB last week, targeting China with the final price having been assessed at around $740-745/mt CFR.
But by the end of the past week, a few large Chinese customers have lowered their bids to $720-730/mt CFR. An Indonesian exporter has been in negotiations at $725/mt CFR, but there has been no information about signing a deal. A rumor about a sale of slabs from the state-owned Indian supplier at $720/mt CFR was heard in the market on September 27, though it could not be confirmed by the time of publication. “China’s demand is very positive for the market, but suppliers need to cut prices to the new level,” a trader said.
In Southeast and East Asia, deals for ex-Indonesia and ex-CIS slabs were done at $740-755/mt CFR over the past ten days. Market sources said that the buyers in the region have had to pay these prices to secure material, but customers are closely watching the situation in China and they may lower their price ideas soon.
The SteelOrbis reference price for imported slabs in Asia has been cut by $17.5/mt on average on a weekly basis to $725-750/mt CFR for now.