The situation in the import slab market in Asia has weakened further, which has been reflected in lower offers and deals, as HRC prices have slipped further. The outlook for the market up to the end of the year is still very negative in terms of demand for slabs and prices.
A deal for at least 40,000 mt of ex-CIS slabs has been reported at $650/mt CFR to Taiwan, but according to sources, it is not very new and this level has reflected the real market conditions for over a week. The previous trades to Taiwan were at $670/mt CFR.
“I believe that the market is approaching $600-620/mt CFR,” a source from Taiwan said. This is connected with the weak conditions in the HRC segment, where buyers are holding a wait-and-see position, deferring bookings. “Suppliers didn’t come out with new offers, as they don’t know what to offer, the same as us for HRC,” a re-roller from the region said.
An Indonesian slab supplier has been offering at $650/mt CFR to China with no response from buyers, and market sources said that it has been possible to get $640/mt CFR from the seller.
“We sold a part of billet volumes instead of slabs. Prices are almost the same now,” a Russian slab seller said.Deal prices in the Vietnamese HRC market have fallen below $800/mt CFR, being at $800-805/mt CFR last week.
The SteelOrbis reference price for imported slabs in Southeast Asia has been cut to $650/mt CFR, down by $10/mt on average from last week.
