Demand for slabs in Asia has softened in the second half of January as, following a number of deals earlier, customers have mostly been refusing to accept higher offers.
Over the first two weeks of January, a few deals for imported slabs were concluded to Taiwan and Southeast Asia at $435-440/mt CFR. After that, a deal for a sizable volume was concluded at $455-460/mt CFR, but major customers have not been ready to buy at this level. As a result, offers for imported slabs in Asia are still at $450-460/mt CFR, while bids have been coming at $435-445/mt CFR.
According to a number of sources, suppliers’ final price level may be $450/mt CFR for now. “It is the level that suppliers can give,” a trader said. Another source confirmed that Taiwanese customers have been in negotiations at $445-455/mt CFR. But no new deals have been done. “Yes, we are planning a [HRC] price increase for March, but the fair price for slabs for us is $435-440/mt CFR,” a buyer from Taiwan told SteelOrbis. Offers for ex-Taiwan HRC for the export market are $510-520/mt FOB for March shipment, while contracts for February shipment HRC have been heard at $500/mt FOB maximum.
A possible demand improvement from China after the week-long holiday may prevent import slab prices in Asia from declining, but the situation will depend on the trend in the HRC market.