Prices in the Asian slab market have eased slightly in early May after weeks of constant increases. This has happened even despite the positive mood in China after the holiday. However, further significant declines are not expected in the near term.
The Indonesian mill has cut its offers for slabs for July shipment by $10/mt to $530/mt FOB, amid the absence of deals and active negotiations for almost a month. After the previous purchases, major customers started to resist the upward trend and, even though the slab market is still in short supply, the shortage is not as severe as seen earlier. The offer price level for plate grade slabs, mainly for the European market, has been heard at $540-550/mt FOB.
European customers have started to check prices for July shipment slabs more actively. Most offers and current negotiations are at $590-610/mt FOB, down by at least $10/mt from the previous levels. The lower end of the range corresponds to HRC grade slabs, while more the popular plate grade slabs are under negotiation at $600-610/mt CFR, versus previous deals at $620/mt CFR last month. “No one is talking about $620/mt CFR and above anymore. Only Turkey and some Mediterranean suppliers may offer this indicatively,” a local European source said. Another trading source added, “Algeria may succeed, but I don't think Turkey will.”
There has not been that much activity in other markets. In particular, some second-tier Chinese mills have been offering HRC grade slabs in the regional market at $490-495/mt FOB, but no new deals have been heard so far. This price translates to around $520/mt CFR Southeast Asia, which is almost in line with the previous ex-China sales to Southeast Asia at $518/mt CFR. Other Asian sellers, which managed to sell at $525-540/mt CFR Southeast Asia in mid-April, are staying away from offering, but indicative offers are assessed at $520-535/mt CFR for India and Japan.
In Turkey, the current slab prices are not so firm since the market is not considered to be settled, although ex-Asia offers have definitely increased after the holiday. Sources estimate ex-China July shipment slabs should be available at $555-560/mt CFR, which is not so workable now, while the indications before May 1 stood at $540-545/mt CFR, SteelOrbis has learned. Once again, no firm offers are heard from Malaysia, but some buyers are said to be negotiating new lots for July shipment. The previous round of sales was closed at around $580/mt CFR, and so the supplier is expected to target $585-590/mt CFR in the current sales. As for Russia, its latest targets are at $560/mt CFR for non-sanctioned material and at around $530-540/mt CFR for sanctioned material. Interestingly, according to buyers, Turkey is offering slab to Europe at $600/mt FOB, while the same level is also indicated by the Algerian supplier.
