The workable price level for imported slabs in Asia has remained unchanged over the past week. Though some suppliers are still offering at higher prices compared to the previous deal prices, overall demand has slowed down, mainly because of less interest from China.
Offers for slabs from Mexico have been at $420/mt CFR China recently, while some tonnage from the CIS has also been priced at the same level to China and other Asian buyers. At the moment, the tradable price is still not above $415/mt CFR, which is in line with the latest bookings to China and the rest of Asia. As SteelOrbis reported earlier, a large lot of Russian slabs was sold to Asia at $410-415/mt CFR earlier this month, as reported a week ago, and a contract for ex-Brazil slabs was signed at close to $415/mt CFR China also some time ago.
“China will stop purchases. We don’t have interest in slabs [at the offer level at $420/mt CFR]. Customers have been overbooked in the past few months,” a Chinese trader said. Moreover, future prices for HRC in China have started to post gradual declines, which affects sentiment in the local and import market.
Sources believe that Southeast Asian customers may bid at $415/mt CFR for imported slabs, seeing a further HRC price increase in the region, but no new bookings have been reported so far. Taking into account overall limited offer volumes of slabs in Asia, the market is in equilibrium, sources believe.
Over the past week, import HRC prices in Vietnam have increased to $455-460/mt CFR, up by $10/mt, according to SteelOrbis’ data.