Prices for imported slab in Southeast Asia have posted some further slight declines over the past week mainly due to very sluggish demand and extremely low bids from buyers. However, given the recent rebound in China and relatively positive expectations for the near future, some market participants believe that the current slab price could be at the bottom.
The SteelOrbis reference price for imported slabs in Southeast Asia has dropped to $470-555/mt CFR, with the midpoint at $512.5/mt CFR, down $7.5/mt on average over the past week. The lower end of the range corresponds to buyers’ highest price ideas and some offers for ex-Iran slabs, while the higher end represents ex-Indonesia offers in the region.
An offer for ex-Iran slab was at $470/mt CFR to China, but this was early this week. At that time, buyers would accept only $440/mt CFR or so. For now, bids may be higher, market sources believe, but still hardly above $460/mt CFR.
Also, a Russian mill shipping from Far East ports has been offering slabs to Southeast Asia at $490/mt CFR, down by $10/mt over the past week. But no new deals have been reported with Indonesian customers heard not to be giving any bids, while Taiwan was waiting for $450-460/mt CFR. “I would say that the real market level is around $480/mt CFR in Southeast Asia now,” a trader said.
At the same time, an offer from one of the major Indonesian suppliers has been heard at $555/mt CFR in the local market and in Southeast Asia in general. Furthermore, the same mill has been offering slabs at $585/mt CFR to Europe, which, however, did not trigger demand, since the offer is for HRC grade slab, which is cheaper and less popular in Europe.