Weak demand for slabs in Asia and the reversal of the trend in the HRC segment after a brief increase a week ago have led to lower bids voiced from Asian customers for imported slabs. Even though some suppliers have not been ready to lower prices, some have been considering a decrease to push volumes, SteelOrbis has learned.
As a result, a sale of around 50,000 mt of ex-Russia slabs has been reported to Southeast Asia at $490/mt CFR or so, down from the previous contract for the same origin at $515/mt CFR reported earlier in September. Also, market sources said that some traders have been testing the Chinese import market with the tradable level there being at $470/mt CFR, though no deals at this level have been reported so far.
Last week, one of the major Iranian producers was in negotiations for a deal for 30,000 mt of slabs at $430/mt FOB. But there has been no confirmation of the deal having been done by late last week and market sources said that the tender was canceled. This lot was expected to be resold to Asia in the future. The freight from Iran to Southeast Asia has fallen to $45/mt at the highest for a large volume.
Asian regional slab suppliers have been less willing to cut prices. Offers have been heard for ex-ASEAN slabs at $565-570/mt CFR, which is assessed as too high as for instance ex-China SS400 HRC has already been sold to Vietnam at $570/mt CFR.
Asian slab suppliers have been resisting cuts in prices as they have been hoping to get better prices in distant markets like Europe. Rumours about a trade made by POSCO to Europe at $610/mt CFR and above have been spread in the market, but this information has not been confirmed by the time of publication. Sources said that the latest contract done to Italy was at $580/mt CFR, as reported last week.
The SteelOrbis reference price for imported slabs in Southeast Asia has been lowered again $490-560/mt CFR, down by $15/mt over the past week, fully offsetting the rises seen last week.