Increased uncertainty in Asian slab market amid volatile Chinese HRC

Wednesday, 03 November 2021 16:58:29 (GMT+3)   |   Istanbul
       

Prices for imported slabs in Asia have shown small changes over the past week, but customers have been asking for another decline, seeing the downtrend in the HRC segment in China early this week.

The latest deal price levels for ex-Russia prime grade slabs to Southeast Asia have been at $735-740/mt CFR.

One deal for ex-ASEAN slabs to Indonesia has been heard at $760/mt CFR, but this could not be confirmed by the time of publication. Market sources believe that this level is already too high for the current circumstances. “We hear the new level [asked by Asian customers and which was in negotiations with some sellers] has already come to $700-720/mt CFR,” a Southeast Asian source said.

At the moment, most major sellers are not ready to provide such low levels to customers due to their closed order books for December production slabs, only excluding suppliers offering Iranian material who need to be more flexible due to the absence of Chinese demand.

China is still refraining from slab imports, taking into account the sharp fall in flat steel prices in the local market on Tuesday, November 2. During the first two days of the current week, average local HRC prices in China declined by RMB 280/mt ($44/mt).

“Now it is close to the cold season, the raining season and the holiday season next month. The market is very volatile now,” a slab importer from Asia said.

Mark participants are closely watching the developments in China before decision on slab prices. Today, on November 3, local HRC prices in China have rebounded by RMB 75/mt ($12/mt). “We are not offering at the moment. Let’s see what the trend will be in China and for HRC in general in the future,” one slab seller said.

The SteelOrbis reference price for imported slab has been stable from last week at $730-740/mt CFR.


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