Import slab prices have fallen further this week, following the sharp declines seen in the HRC segment and taking into account very poor demand in Asia with China fully out of import inquiries, having very low tradable price levels in the local market, SteelOrbis has learned from the market on July 19.
Regional slab suppliers (from Indonesia and Malaysia) have been offering at $575-600/mt CFR to Southeast Asia. Early this month, most Asian offers were hardly below $650/mt CFR. But demand has been critically weak and buyers have not even been voicing bids. Since SAE1006 HRC prices in Vietnam have already hit $610/mt CFR, market sources believe that the reasonable slab price in Southeast and East Asia should be around $550-560/mt CFR.
The assessment for ex-Russia slab offers to Southeast Asia has been heard at $520/mt CFR, which is $10/mt below offers to Taiwan in early July.
At the same time, China, which was the major ex-Russia slab buyer over the past months, has left the market at the moment after the sharp fall in HRC prices. Deals for ex-Russia slabs were at $505-525/mt CFR in late June-early July and then at least one sale was rumoured at $540-545/mt CFR China. But after the tradable level for imported slabs in China fell far below $500/mt CFR, there has been a lack of negotiations with Russian or other slab suppliers.
“With China not an option [for sales] anymore, [Russian] suppliers target Turkey,” a trader said.
The SteelOrbis reference price for imported slabs in Southeast Asia has been lowered to $520-580/mt CFR, with the midpoint at $550/mt CFR, down $40/mt on average compared to early July.