Slab suppliers have increased prices by about $10-15/mt for Asian customers over the past week, seeing sharp increases in flat steel prices in the region, for HRC in particular. However, demand from China, the main importer in Asia in past months, has been weak.
Offers from Brazil and Russia to customers in China and Southeast Asia have been at $440-445/mt CFR and even up to $450/mt CFR, sources have said. The workable price level has been assessed at $435-445/mt CFR, which is $10-15/mt above last week’s level.
The price at $440/mt CFR and above has been “too high for China now,” according to a number of traders, though there have been no offers below this level. “China is buying less [HRC and slabs] as prices are high,” a source said.
However, some demand can be seen in Southeast Asia, Indonesia in particular, and Taiwan. Taking into account current HRC prices and the optimistic outlook, the tradable value in these countries should be at about $440/mt CFR on average, traders reported.
HRC from Taiwan has been sold at $490/mt CFR to Vietnam early last week and at the moment asking prices from Taiwan have already reached $505/mt CFR. The workable price level for HRC in Vietnam increased by $25-30/mt to $495-500/mt CFR late last week.
