Weakening of the HRC market in China and in the whole Asia has led to declines in the imported slab prices in the region, SteelOrbis learned from the market on October 14. Though there are still hopes for a return of some rebound in the slab segment by the end of the month, it will be hardly possible without gains in HRC.
New offers for ex-Indonesia slabs have been reported at $545-555/mt CFR from two different mills, down from mainly $565-570/mt CFR in offers for ex-Asia slabs seen before the Chinese holidays. “The market seems to be slowing down, demand is poor for HRC, so slabs are also doing badly,” a source from Southeast Asia said.
Ex-Iran slab offers have been heard at $485-490/mt CFR, but no deals reported so far. Russian suppliers have not been active, waiting for China to come back from the holidays and place new inquiries. The tradable level in China is below $490/mt CFR at the moment, according to sources.
The SteelOrbis’ reference price for import SAE1006 HRC has moved to $575-590/mt CFR Vietnam, down by $15-20/mt in two weeks. In such conditions, Asian slab customers will insist on discounts, while Asian mills, which are not competitive, will keep trying to sell to distant markets like Europe.
The latest slab offer for Korean slabs to Europe has been reported at $570/mt CFR, which is down from the ex-Vietnam deals at $600/mt CFR and ex-Korea deals at $570-580/mt CFR done in September.
The SteelOrbis reference price for imported slab in Southeast Asia has lost $15/mt over two weeks, coming to $485-555/mt CFR.
