Prices for imported slabs in Southeast Asia have continued to go down mainly due to the significant slowdown in HRC demand and lower bids from customers. The downtrend in China and more low-priced offers have put pressure on prices and resulted in negotiations concentrated only on cheaper slab origins.
The lowest slab price in Asia has been fixed at $540/mt CFR for sales of up to 120,000 mt of ex-Iran slabs. Last week, the lowest tradable level was assessed at $550/mt CFR. In addition, around 40,000 mt of ex-CIS slabs have changed hands in Southeast Asia at $575/mt CFR. All tonnages were booked for June shipment.
Moreover, there have been rumors that some traders have voiced possible tradable levels for ex-ASEAN/ex-China origins in short positions at $530/mt CFR to Taiwan and Thailand, though no deals for these origins have been reported so far. “I think you can find offers at $550/mt CFR, but I am not sure if someone will be interested if China is so crazy,” an Asian importer said.
The major Russian mill in the Far East has been heard offering slabs in the region at $550/mt CFR, with no success in sales lately. “The mill is struggling to sell billets, so it has to cut prices for slabs too,” a regional trader said.
Ex-ASEAN mills have remained uninterested in offering in the region, targeting distant markets. The tradable level for imported plate-grade slabs has been heard at $630-640/mt CFR in Europe, down from $650/mt CFR reported last week. As for the Asian market, sources have been estimating ex-ASEAN offers at $580/mt CFR, though this level has been mostly nominal.
The SteelOrbis reference price for imported slabs in SE Asia has settled at $540-580/mt CFR with the midpoint at $560/mt CFR, down $15/mt on average over the past week.