Prices for imported slabs in Asia have remained low and bids from some customers have continued to decline, and so trading has almost halted with only sporadic deals done in the second half of August coming to light. Suppliers have not been active in offering slabs in the region, waiting instead for the expected improvement in the HRC segment first.
The latest transactions for imported slab were one or two lots of ex-Iran material sold at $515/mt CFR to Indonesia around two weeks ago. After that, no fresh sales were seen in the market.
One customer in another ASEAN country was in the market a week ago, but the signing of a contract has not been confirmed so far. Ex-ASEAN regional offers are still at $550/mt CFR, though some discounts are possible in negotiations.
In Taiwan, bids for imported slabs have fallen from $500/mt CFR to $490/mt CFR. This level is not attractive for sellers. Large Russian mills have been waiting for Turkey to come back to the market with higher slab bids, rather than sell at low prices to Asia. Bids in Taiwan have been moving in line with the declining HRC prices, with the latest price for ex-Taiwan HRC to Vietnam at $590/mt CFR.
Demand in China has been almost absent with bids even at the previously reported $490/mt CFR having disappeared. “Until the HRC market improves, there will be no bids for slabs. That is why we don’t see offers,” a trader said.
The SteelOrbis reference price for imported slabs in Southeast Asia has remained at $500-550/mt CFR.
