Prices for imported slabs in Southeast Asia have moved down further since last week as more Asian sellers have been cutting prices or have started to offer at competitive levels after an absence. Falling HRC quotations have added to the downtrend in the slab segment.
The lowest offer for imported slabs is still from Russia as not many buyers are considering purchasing from Russia due to sanctions for the country’s invasion of Ukraine. After a deal reported for ex-Russia slabs at $740/mt CFR to Indonesia, offers to Southeast Asia declined first to $720/mt CFR, then to $700/mt CFR, and the latest level has been reported at $690/mt CFR.
In addition, an Indian mill has restarted slab offers to SE Asia, at $710/mt CFR, which has been assessed as being fairly competitive in comparison to other Asian origin offers.
At the same time, at least one offer of ex-ASEAN slabs has been heard at $790/mt CFR, down from the previous high $850/mt CFR level. Another regional supplier has officially offered at $840/mt CFR, but most market sources said that it is too high for the current market, taking into account HRC prices.
This week, the import HRC price in Vietnam has lost $50/mt, coming to $800-820/mt CFR, while some ex-China HRC offers at $780-785/mt CFR have already been heard to Taiwan. “China is the standard for the market. If they cut prices all the time, buyers become confused and want to wait and wait,” a HRC producer in Asia said, adding that overall inventories of slabs in Southeast Asia are enough and their costs are high, and so the interest in slab purchases is minimal.
The SteelOrbis reference price for imported slabs in Southeast Asia has been settled at $690-790/mt CFR, with the midpoint at $740/mt CFR, down by $35/mt over the past week.
There have been no fresh deals for import slabs to China after two contracts signed at $630-650/mt CFR from Russia more than a week ago. The offer level is still at $620/mt CFR, while Chinese customers are looking for $600-620/mt CFR in their next purchases from Russia.
