An uptrend has been seen in the imported slab market in Southeast Asia this week, following an improvement in the flat products market. The most competitive prices have been coming from China and Russia, while most ex-ASEAN suppliers have either been targeting higher prices or have stopped offering actively, switching to HRC sales to distant markets, SteelOrbis has learned.
There have been reports that an ex-China slab deal for around 30,000-40,000 mt has been signed to East Asia at $620-630/mt CFR. “The Chinese prices are among the most reasonable now,” a source said. Moreover, another bid from Asia has been reported at $630/mt CFR.
The SteelOrbis reference price for imported slabs in Southeast Asia has increased to $600-660/mt CFR with the midpoint at $630/mt CFR, up from $575-630/mt CFR two weeks ago. The lower end of the range translates to ex-Russia tradable prices, though some market sources reported that offers are at above $600/mt CFR to a number of customers in Asia.
The higher end of the range corresponds to ex-ASEAN offers. An Indonesian mill has been asking for $640/mt FOB, or $660-670/mt CFR Asia. Previously, some sales to other destinations like Turkey were at $630/mt FOB, and so the mills are reluctant to sell at lower levels. “Some [ASEAN mills from Malaysia and Vietnam] are aiming even higher… $670/mt FOB and up,” a trader said.
The uptrend in the HRC market has allowed slab prices to increase lately. The import HRC price in Vietnam has gained $15/mt in two weeks, reaching $680-690/mt CFR. In addition, export prices from Vietnam and Taiwan for HRC have been at $720-725/mt FOB in the latest sales. Local HRC prices in Taiwan have been at $690-700/mt ex-works.