Prices for imported slabs in Asia have slipped further, following the global downtrend in the HRC segment and the still limited demand from the majority of buyers. Russian suppliers have still been focused on sales to China, while Asian slab sellers have been trying to attract Southeast Asian customers, though with a lack of success so far.
The latest deal for ex-Russia slabs to China has been fixed at $600/mt CFR or slightly above, though the level of $590/mt CFR has also been reported as that in negotiations early this week. “We are fixing the price in RMB, so the dollar-based price may differ slightly,” a seller said. The current deal is still much below the previous contract for ex-Russia slabs to China at $630/mt CFR earlier in May.
The outlook for the slab market in China is mixed. From one side, bids from some Chinese customers heard this week have already fallen to $570-580/mt CFR for ex-Russia slabs. But from the other side, China has cut a key interest rate for long-term loans today, which has pushed sentiments and futures for HRC up on May 20. The five-year loan prime rate has come to 4.45 percent, which is a record reduction, and it is expected to help the construction industry by decreasing mortgage costs for real estate.
In Southeast Asia, a deal for ex-India slabs was heard at $710/mt CFR last week, though this could not be confirmed by the time of publication. An offer for ex-Indonesia slabs has been at $740-750/mt CFR, while earlier in May the producer had been insisting on above $800/mt CFR Southeast Asia.
Also, a trader has tested the market with an offer for ex-Iran slabs at $700/mt CFR. In these conditions, the SteelOrbis reference price for imported slabs in Southeast Asia has dropped further to $680-740/mt CFR, with the midpoint at $710/mt CFR, down by $30/mt over the week.
