Slab prices in the Asian market have increased over the past two weeks and this has been confirmed in two recent bookings. At the same time, weaker demand for flat steel products, HRC in particular, has put pressure on the slab price outlook and market participants do not exclude some price correction in the near future.
One deal for ex-Russia slabs has been done to Indonesia at close to $680/mt CFR, while another contract has been signed with a Taiwanese buyer at slightly below this price level, SteelOrbis has learned. One deal was closed last week, while the second one was transacted in early January. An offer from an Asian supplier was heard at $690/mt CFR Indonesia last week and the overall number of offers has remained limited, supporting the price trend.
Nevertheless, sentiment in the flat steel market in Asia has weakened recently, which may exert a negative impact on import slab prices in the near future, market sources believe. “Now we can see weaker demand for HRC. We do not expect prices in Europe, Asia or the Middle East will go up any longer,” an Asian re-roller said. For now, prices for re-rolling grade HRC in Asia above $720/mt ex-works/FOB are seen only in some local markets like Taiwan and from the large Chinese, South Korean and Japanese mills, while all bids from Vietnamese buyers are not above $680-690/mt CFR.
The SteelOrbis reference price for imported slabs in Asia has been settled at $675-680/mt CFR, narrowing upward by $5/mt on the lower end compared to last week.