Slab prices in Asia have decreased recently as the downtrend in the HRC segment has been exerting pressure, while overall demand is unlikely to increase in the near future.
A deal for 40,000 mt of ex-Russia slabs has been concluded at $440/mt CFR Indonesia, down by $15-20/mt compared to another deal to the same country reported by SteelOrbis earlier.
Moreover, customers in Taiwan have said that their price idea has moved down to $420/mt CFR maximum, $10-20/mt below previous bids. The downtrend in the HRC market in Asia has put pressure on the situation in the slab market. The price level for import HRC in Vietnam has come to $485-495/mt CFR, $25-30/mt below the pre-holiday level.
It is expected that demand for slabs in Asia will be stable in the near future. Indonesia producer PT Krakatau Steel is going to launch its hot strip mill No. 2 in the second half of 2020, whereas the start of operations had previously been expected for the first quarter.
