Slab prices in Asia have remained under pressure in late October as demand has been subdued and as the downtrend has persisted in the international hot rolled coil (HRC) market. Slab offers from Japan and Russia have been at $375-380/mt CFR over the past week ended on October 30, stable on average compared to last week. Some traders have been offering slabs at $370/mt CFR to customers, in anticipation that producers will have no other option but to lower prices to this level soon.
Offers for slabs from Russia have stayed at the same levels, but prices from Japan, which were higher than ex-Russia prices, have lost $5-10/mt.
The indicative level for Iranian slabs is unchanged at $370/mt CFR, but the price has been assessed by major customers as being too high. Bid prices for slabs have come down as low as $350/mt CFR Asia.
Overall demand in Asia has remained weak and there have been no reports about fresh deals. “If major HRC mills from India, South Korea, Japan and even CSC from Taiwan can give $390-400/mt FOB for HRC, how can we buy slabs?” a Taiwanese source asked. The latest HRC offers to Taiwan from India have been at $410/mt CFR and have been at $420/mt CFR from South Korea, sources said.