Over the past two weeks Chinese customers have bought at least 300,000 mt of imported slabs from Brazil and Russia, signalling a positive outlook for the local Chinese HRC and plate segments. Bid prices have declined further due to tough competition in the market and sluggish demand elsewhere.
Market sources have reported that up to 150,000 mt of slabs from Brazil was sold to China at $365/mt CFR last week. Moreover, about a similar tonnage of Russia-origin slabs in total has been traded at the same level over the past two weeks. “300,000 mt is a small quantity for the Chinese market. The buying power is huge in China, if people see there are chances,” a trader has commented.
Moreover, bid prices have declined further by $10/mt to $355/mt CFR, Chinese sources have said. A few fresh deals for ex-Russia and ex-Brazil slabs have been reported at this price level to China.
Demand from the other customers in Asia - Taiwan, Indonesia and Thailand - is still weak, because the plunge in HRC prices in the region has made the outlook for future development extremely unclear. Prices for HRC in Vietnam have fallen to $400-407/mt CFR in the latest confirmed deals, while just a week ago the price level was $450/mt CFR.
As a result, the price level for import slabs in Asia, which now reflects mostly prices to China, has declined from $365-380/mt CFR last week to $350-360/mt CFR, according to SteelOrbis.
