Prices for imported slabs in Asia have improved over the past week, supported by the uptrend in the flat steel segment, for HRC in particular. But overall trading activity has remained limited in the slab market.
The latest deal for ex-CIS slab has been heard at $680/mt CFR to the Asia region. This level is up by $35/mt compared to the contract concluded before the Chinese New Year holiday and is up by $10-20/mt compared to the tradable value a week ago, according to customers.
Nevertheless, the majority of buyers have not been very interested in purchases so far. “The price is too high for the Indonesian market,” a mill’s representative said, adding that their price idea is $660/mt CFR.
The support for slab prices has come from the positive flat steel market in the region amid the post-holiday increases in China. Market sources believe that the HRC price level will reach $750/mt CFR in Vietnam soon, up from last week’s deals at $720-735/mt CFR.
As a result, a further slab price increase is expected in the market in the coming weeks. Suppliers have started to announce offers at $695-700/mt CFR Asia this week. Chinese customers have not been interested in slab imports lately, but this is possible in future if local flat steel demand improves visibly in March as expected.
The SteelOrbis reference price for import slabs in Asia has been increased by $10-20/mt over the past week to $680/mt CFR.