Offers for slabs in Asia have increased further over the past week, supported by increases in the flat steel market. At the same time, demand from major customers in Southeast Asia and East Asia has been weak so far. Moreover, customers in China have been cautious, but, taking into account strong HRC and plate prices in China, the workable price level has already increased.
Offers for Russian, Southeast Asian and Brazilian slabs have been heard at $430-435/mt CFR China, but there have not been many offers in the market. The tradable value has increased to $425-430/mt CFR Asia, taking into account the recent increase in flat steel prices. A deal for Indian slabs has been reported in this range to China, but it has not been confirmed by the time of publication. This compares to $420/mt CFR registered in the previous deals from Russia and Brazil to China.
Bids for slabs from customers beyond China are still not at high levels and are below expectations from sellers - at $420/mt CFR as the highest. “The situation in Southeast Asia has not improved. Even Taiwan has no deals,” a trader said.
The tradable value for imported HRC in China and Vietnam has been at $480-485/mt CFR and, with recent gains in local prices, Asian importers may consider accepting higher slab prices.
Offer prices for Indian HRC have increased to $500/mt CFR on average in Vietnam and up to $520/mt CFR from some mills.