Most import slab buyers in Asia have been insisting on further cuts in prices and, as HRC prices in the region have continued to go down too, there has been little chance of slab prices remaining stable.
Major suppliers from Indonesia, Russia and Iran have been reluctant to provide firm offers for February shipment, asking first for bids from customers. But according to sources, they have been ready to deal at $630-640/mt CFR, versus mainly $650/mt CFR in the first half of December. At the same time, Southeast Asian customers have been cautious in purchases, expecting prices to touch $610-620/mt CFR for high grade slabs in the near future.
In addition, after a long pause China has started negotiations and a deal at $635/mt CFR is reported to have been done last week. Earlier, major sellers were asking 650/mt CFR for February shipment.
The lowest tradable price in the Asian market has been reported from a trader for ex-Iran slabs at $610-620/mt CFR, but the shipment has been not disclosed and market sources doubt that it is the material sold in the recent tender by an Iranian mill. Most sources agree that prices have fallen further, but they have not fallen to this level yet.
“HRC drops, billet prices are also lower: there is simply no support,” a trader said. The HRC price in Vietnam has declined to $790-795/mt CFR, down by $10/mt over the past week.
The SteelOrbis reference price for imported slabs has been settled at $630-640/mt CFR, also going down by $10/mt since last week.
