Slab prices in Asia have dropped further, while sellers - mainly from Asia - have been interested in exports, with China the most targeted destination. Demand in most other Asian countries has fallen due to extremely weak finished steel demand and planned stoppages.
Offers from such suppliers as Japan, India and Indonesia have been heard in the wide range of $370-395/mt CFR in Southeast Asia and Taiwan this week. The tradeable level for exporters to China has been $385/mt CFR, while the previous deals were concluded at $395-410/mt CFR China, as SteelOrbis reported earlier. “India and Japan were actively offering recently, but no one is interested in buying,” an Asian trader said describing demand in Southeast Asia. There have been no firm offers heard from the CIS after a number of deals to China earlier.
“HRC prices in Asia are falling every day and even at $440/mt CFR [Vietnam] there is no demand. I have never seen such a difficult situation,” an Asian flat steel supplier told SteelOrbis. Some companies in Indonesia, Thailand and Taiwan are considering to shut down or reduce HRC production in April, and so slab consumption will decline further.
China is expected to remain the only big sales destination for slab sales in Asia in the near future. Bid prices have been heard at about $360/mt CFR, and though no seller is ready to give such a level at the moment, it may be achievable in the future as the situation in the HRC segment is unlikely to improve.