Prices for imported slabs in Asia have continued to fall under pressure of HRC price declines and still higher supply volumes as compared to demand. Russian suppliers, having a lack of sales destinations, have been pushing sizable tonnages to China after providing additional discounts, SteelOrbis has learned from the market.
At least 150,000 mt of ex-Russia slabs have been traded at $505-525/mt CFR in general. The first lots changed hands at $520-525/mt CFR, while for the rest of the volume the supplier has had to cut the price to $505-510/mt CFR. Previous offers from Russia to China were at $530/mt CFR, according to SteelOrbis’ data. For Chinese customers, the price is the main factor in purchases as payments with Russia due to Western sanctions are not as problematic as in many other countries.
Also, ex-Russia slabs have been offered to Taiwan at $530/mt CFR, which is $20/mt below the buyers’ price idea a week ago. No new deals have been reported so far. “HRC demand is bad here [in Asia]. There is no need to buy slabs,” an Asian source said.
In Southeast Asia, offers for Asian origin slabs have been at the general level of $650/mt CFR, but most buyers have not been interested in buying at such a high level, taking into account that the import HRC price has already hit $670/mt CFR.
However, it is said that ex-Iran slabs sales were done at $525/mt FOB and $517/mt FOB last week, with the final destination expected to be Southeast Asia. These prices correspond to below $590/mt on CFR basis. The deals have not been finally confirmed by the time of publication.
If the downtrend in the HRC segments continues in Asia, further declines in slab prices are not excluded.
The SteelOrbis reference price for imported slabs in Asia (excluding China) has been settled at $530-650/mt CFR, with the midpoint at $590/mt CFR, down by $35/mt on average over the past week.
