Over the past fortnight, Asian suppliers have increased slab offers even though demand has been extremely low. The uptrend seen in China last week and the push from the cost side have supported slab prices, while only rare deals for small volumes have been done at similar or just slightly higher prices.
Most available offers for ex-Asia slabs have been at $450-460/mt FOB for September-October shipment, which is up by $15/mt from the levels of $435-445/mt FOB two weeks ago. “The Indonesian mill has been offering at $455/mt FOB, though they are selling only billets and HRC lately,” an Asian trader said, adding that the slab offer is indicative and almost in line with billets. One of the major Vietnamese mills has withdrawn offers this week after offering $460/mt FOB last week. One deal from Vietnam has been rumored to the US at this level, but a few market sources believe that this is not a fresh deal.
Trading activity has been close to zero in Europe and Turkey due to the holiday season and the unwillingness of buyers to accept any higher prices for feedstock when finished steel prices have not gained in deals.
At the same time, in Southeast Asia, a small deal for 3,500 mt of ex-China SP235 grade slabs was done at $463/mt CFR Thailand, but it was around 10 days ago, and it was equivalent to $443-445/mt FOB. Another deal for 1,000 mt of SP355GM grade slabs was at $503/mt CFR to the same trade destination for end of August-early September shipment. No new deals have been reported to Asia after offers for base grade SP235 slabs increased to $470/mt CFR and above.