Prices for imported slabs in Asia have been following the increasing trend in the HRC segment, but overall demand has remained slow. So large regional sellers, South Korean POSCO in particular, have been targeting sales to distant markets with success seen only in Europe for now.
The SteelOrbis reference price for imported slabs in Southeast Asia has increased to $515-565/mt CFR, up by $15/mt over the week. The lower end of the range corresponds to the only deal heard at $515/mt CFR for ex-Russia slabs (about 40,000 mt) to Indonesia last week. Previously in Asia the tradable level for ex-Russia and ex-Iran slabs has been assessed at around $500/mt CFR, and previous sales to Taiwan from Russia were done at this level. New offers for ex-Russia slabs for November shipment are $520-530/mt CFR.
Asian sellers have also been targeting higher levels without much success. In particular, an Indonesian producer has been offering at $565/mt CFR, while in early September it was possible to get $550/mt CFR. At the same time, ex-POSCO slabs could be negotiable at $550/mt CFR in Southeast Asia and $530-540/mt CFR in China, but customers are not showing much interest.
Slab prices in Asia have been following rises in HRC tags in the region. Import price level in Vietnam has increased by $15/mt on average to $610/mt CFR.
But since demand in the region has been still limited and China has not resumed slab imports, Asian suppliers have been targeting distant markets. The major South Korean producer POSCO has managed to sell 40,000 mt of slabs to Italy at $580/mt CFR, which is in line with bids heard at this destination, but $10-20/mt below offers for ex-South Korea slabs reported early this week. No other deals have been done by POSCO at other destinations, like the Americas, Turkey or Asia, as bids there were lower.