Following gradual increases in HRC prices in Asia, slab suppliers have been hiking their offers in the region. However, most customers have been reluctant to purchase at higher prices, seeing poor demand for flats in Asia and weak margins, SteelOrbis has learned from the market on August 15.
New offers for ex-Russia and ex-Iran slabs to China have been reported at $510/mt CFR minimum, up from the previous deal for ex-Russia slabs reported at $480-490/mt CFR last week. But since local HRC prices in China have been fluctuating in a limited range, the tradable level for slabs has failed to improve so far. In fact, the average local HRC price in China has lost RMB 35/mt ($5/mt) over the past week to RMB 4,045/mt ($600/mt) ex-warehouse.
There has been information about an ex-Iran slab tender closed at $435/mt FOB, which is $5/mt below the previous export price level.
However, traders’ offers for ex-Iran slabs in East and Southeast Asia have been reported at $510-515/mt CFR, up at least $5/mt from early August. “The market is very quiet these days. These are just [sellers’] attempts to increase prices, though there is no demand,” a source from Indonesia said.
The largest slab producer in Russia’s Far East region has increased offers to Southeast Asia to $550-560/mt CFR and to $540/mt CFR to East Asia, while in early August offers from Russia to the region excluding China were mainly at $520-530/mt CFR or slightly below. Some Russian mills, not located in the Far East, have not been active in the Asian market, seeing low slab prices. “We can sell slabs to China or Taiwan later this year, when demand in the local market in Russia will tumble and we will not have other outlets,” a seller source said.
One of the ASEAN mills has been offering slabs in Southeast Asia at $560/mt CFR, while two weeks ago the level was at $550/mt CFR for ex-Indonesia origin slabs.
The SteelOrbis reference price for imported slabs in Southeast Asia has been settled at $520-560/mt CFR. The lower end of the range has increased by $20/mt, while the higher end has risen by $10/mt, since early August.
The lower end of the range at $520/mt CFR corresponds to the tradable level in East Asia, according to market sources.
