The uptrend has continued in the Asian slab market as stronger HRC prices in the region have led to higher bid prices for slabs. Prices for slabs have added $5-10/mt over the past two weeks to $435-440/mt CFR Southeast Asia.
Though major slab suppliers - from Russia - have been on holiday since December 30, before the New Year holidays a batch of slabs were traded at about $435/mt CFR Thailand, traders said. The workable level for slabs in Asia is assessed by market sources at $435-445/mt CFR at the moment, taking into account the sharp HRC price increase seen over the last two weeks. Ex-Russia prices are expected to be announced at up to $450/mt CFR after the holidays as ex-India offers have already been heard at this level.
The fresh deals for HRC to Vietnam have been done at $510-515/mt CFR, up $25-30/mt compared to mid-December. Taiwanese flat steel producers said that local HRC prices have also gained and reached up to $520/mt ex-works.
Chinese customers will also resume buying import slabs in the near future, taking into account firm local HRC prices and stable sales. At the moment, the average local HRC price in China is standing at RMB 3,825/mt ($555/mt) ex-warehouse, according to SteelOrbis’ data.