Imported slab prices in Asia have declined over the past week, being reflected in the latest transaction prices. This has followed the drop in sentiments in China and the insufficient demand for HRC in the rest of Asia for now.
The latest contract for ex-Russia slabs to China was done at $740/mt CFR, versus $750-755/mt CFR seen a week ago. But since futures prices in the Chinese market dropped a lot in the second half of last week, most customers have been cautious and have adopted a wait-and-see position for now. Sources said that, though the offers for prime grade slabs to China are still at $750/mt CFR, there is no chance of selling there until HRC prices recover.
A deal for imported slabs to Taiwan was concluded at $727/mt CFR last week. Though the origin of the material has not been confirmed by the time of publication, a number of sources said that it should be for ex-Iran or ex-Indonesia slabs. “Shipping problems [which are hurting flat steel exports] are combining with poor demand. There are too many inventories and local demand is supporting the operations of our capacities at just 30 percent,” a Taiwanese re-roller said. Local prices for HRC in the domestic market in Taiwan are stable at around $980/mt ex-works, but the demand is an issue, according to sources.
The SteelOrbis reference price for imported slab has settled at $730-740/mt CFR, down by $15/mt over the past week.
