Demand for slabs in China, which has been the major sales destination in Asia recently, has somewhat weakened recently due to less strong prices in the HRC segment. Interest in purchases from Southeast Asia has been weak due to religious holidays.
A deal for ex-Vietnam slabs has been heard done to China at $390/mt CFR last week. The exporter has not been regular in the slab market and has sold previously a month ago directly to one of Chinese mills, SteelOrbis learned. Ex-Brazil offers have been at the same level – 390/mt CFR China. A contract at this price level has been rumoured in the market, but it has not been confirmed by the time of publication. Offer prices for ex-Russia slabs have been also $390/mt CFR in Asia. Offer and deal prices for imported slabs to China have been at $380-385/mt CFR a week ago.
Overall sentiments have been weaker in the market and Chinese traders have reported that $390/mt CFR is not attractive for them and the workable level should be $5-10/mt lower. “Overall trading is slower now,” a source said.
Interest in slab purchases in China will revive only after the situation and the trend in the local HRC market will become clearer. Average Chinese HRC prices in RMB 20/mt ($2.8/mt) lower on Monday, May 25 than a week ago.
At the same time, demand for slabs in Southeast Asia has been very slow due to the holiday in Indonesia. Bids from Southeast Asia have been heard at $360-370/mt CFR.
