After the price increase for imported slabs in Asia a week ago, buyers have been cautious as regards purchases and are waiting for a clearer market direction. However, slab demand from China may improve in the short term and higher prices may be accepted owing to gains in the flat steel market in China and overall in Southeast Asia.
Offers for Russian and Southeast Asian slabs have been at $460-470/mt CFR over the past week, but no deals have been reported so far. The overall number of offers has remained limited.
At the same time, buyers from Asia have also been mainly on the sidelines after concluding a number of deals earlier and are waiting for further developments in the flat steel market. According to sources, the highest possible level for deals has been assessed at $460/mt CFR, versus contracts at $445-450/mt CFR in mid-August.
On Monday, August 31, the Chinese market showed signs of improvement. The average domestic HRC price has increased by RMB 30/mt ($4.3/mt) over the weekend to RMB 4,010/mt ex-warehouse, while HRC futures at Shanghai Futures Exchange have gained RMB 66/mt ($9.6/mt) since Friday, indicating better sentiment in the market.
The SteelOrbis reference price for imported slabs in Asia still remains at last week’s level of $460/mt CFR for now.
