Prices for imported slabs in Asia have been under pressure over the past week, taking into account still weak sentiment in the flat steel segment even despite the recent rise of ex-China HRC prices. Some low-priced offers from Russia have been reported in the Asian region over the past two weeks. But most sources agree that there are no big fundamentals that can change slab prices much until the end of February.
The SteelOrbis reference price for imported slabs in Asia has declined slightly - by $5/mt on average week on week - to $640-650/mt CFR. “Since last week many companies have already started to go on holiday. We shall wait for the situation after the holidays, though I doubt that prices [for HRC in Asia] may go up strongly then,” a buyer told SteelOrbis.
The rare offers heard in the market are in line with last weeks’ level of $650/mt CFR, but there have been reports of low-priced offers from a Russian producer which is not a traditional seller of slabs to Asia. Offers have been heard at $620/mt CFR last week and one source said that the exporter has been ready to deal at $610/mt CFR. But no deal has been reported even taking into account such a low price level, as “they have only one size of slabs [250 mm]. It doesn’t fit everyone,” one of the sources commented. A few market participants confirmed that the price has been partly attributed to the not common size of slabs and “they may just check the alternatives [compared to HRC sales], based on bids,” another source said. The latest offers for ex-Russia HRC in Vietnam were heard at $650/mt CFR or slightly below in late January, customers are mainly silent. As a result, the low-priced slab offers from Russia have not been included in the SteelOrbis’ reference price.