Offers in the global slab market have started to improve this week, following the rebound in flat steel prices in the major markets. However, after the downtrend which lasted weeks, buyers are resisting higher levels, with trading coming to a halt for now.
The last ex-ASEAN slab tradable price has been confirmed at $500-505/mt FOB, for both ex-Indonesia and ex-Malaysia slab. “Together with billet sales at $495/mt FOB, slabs have come down to $500/mt FOB. Now China is better and sentiments are more positive, so suppliers may try to push prices up,” an Asian trader said. This week, offers for ex-ASEAN slabs have been reported at $515-525/mt FOB. However, no new deals have been reported at higher levels as even flat steel product prices have posted some improvements in Asia, Turkey and Europe, and buyers have not been ready to accept new levels.
As for Malaysian slab supply, market sources are still waiting for the start of commercial production at the new BF at Eastern Steel, which will increase the company’s total steel capacity from 700,000 mt to 2.7 million mt per year. “They planned to start [commercial] production in late September, but maybe there is a slight delay [till late October]. They will offer both slabs and billets, but of course realization is slightly better in slabs compared to billets,” an international trader said.
In Southeast Asia’s import slab market, the reference price slipped to $475-520/mt CFR last week versus $480-530/mt CFR a week earlier. The lowest prices for ex-Far East Russia slab were to Taiwan and China at $475-480/mt CFR, while slightly higher levels were reported for Indonesia, at $485-490/mt CFR. However, this week ex-Russia offers to Asia have increased to $500/mt CFR as sellers have seen an increase in ex-ASEAN offers to $530-550/mt CFR depending on the country. “But I would say for the market the real market level is still at $480/mt CFR,” a source commented. The new SteelOrbis reference price has settled at $490-540/mt CFR.
In Turkey, latest offers from a sanctioned Russian mill have been reported at $495/mt CFR, while from the Russian mill which is not sanctioned they are at $510/mt CFR or so. “Russian prices are much better [than Asian] for Turkey. And there is no ban on the Russian mill for a while,” a trader said. The lowest ex-ASEAN offers to Turkey have been reported at $535/mt CFR, but a number of sources have pointed out that this level is too low, given the increase in FOB levels in Asia. The freight for large volume from Asia to Turkey is estimated at $35/mt or slightly above.