Slab prices in Asia have remained stable in early November, with more deals being heard in the market.
Slab prices have remained at $370-380/mt CFR Asia for the second straight week with more deals being reported in the market mainly due to demand from China. One of the major Indian private sector steelmakers sold about 30,000 mt of slabs to China at $355/mt FOB ($370-375/mt CFR) last week, SteelOrbis was informed. The price is at $377-382/mt CFR, including import duty. Moreover, an Indian state-owned producer managed to sell a cargo to Indonesia at $355-360/mt FOB, which is equivalent to $375-380/mt CFR for December shipment, according to market sources. Indian exporters have managed to sell a few slab batches over the past week, amid the ongoing slackness of their domestic flat steel demand.
Offers from Russia and Brazil have been in the range of $375-380/mt CFR Asia. A Brazilian producer sold 50,000 mt of slabs to China at $375/mt CFR last week.
Since HRC prices started to increase gradually last week, market participants do not expect a further decline in slab prices. HRC quotations in Vietnam increased to $415-420/mt CFR last week and fresh contracts with Indian mills were signed above $420/mt CFR recently. As a result, some slight rebound is possible in the slab market in Asia in the near future, sources said, though it will depend on the purchasing activity of Chinese customers.