Weak flat steel market conditions in Asia and falling HRC prices have resulted in further declines in import slab prices in the region. Demand has remained very sluggish.
Offers for ex-Russia slabs have been reported at $485-490/mt CFR to Southeast Asia, which is stable compared to the level in the middle of October. However, early this week, market sources said that the price of $470/mt CFR has been discussed in Asia. Though no confirmation of a deal at this level has been received by the time of publication, while this price is more reasonable, according to market sources, taking into account the rapidly falling HRC prices in the region.
For instance, the imported HRC price in Vietnam has come down to $550-560/mt CFR, with $540/mt CFR also rumored to be available from some Chinese suppliers.
Official offers for ex-Indonesia slabs in the region have still been voiced at around $550/mt CFR Southeast Asia. “Our local price for plates is still quite high these days, and so mills [in Indonesia] are not so aggressive in cutting slab offers,” a source from Jakarta said.
Since China returned with aggressive offers in the billet export market, market sources are not excluding that China may also start offering some slabs in the near future.
The SteelOrbis reference price for imported slabs in Southeast Asia has been lowered to $470-550/mt CFR, down by $10/mt on average in the past two weeks.
