The tradable value for slabs in the Asian market has fallen further despite suppliers’ resistance to giving big discounts. The situation in the HRC segment has not improved and prices have continued to decline gradually, putting pressure on the slab segment.
Slab offers from major suppliers from Southeast Asia and Russia were at $440-445/mt CFR, almost the same as a week ago. But customers have been asking for additional discounts and said this level is not workable any more. Bids from buyers from Indonesia and Taiwan have been heard at $415-430/mt CFR.
There was a rumor about a deal to Asia at $430/mt CFR, but there have not been any details by the time of publication and no confirmation from major sellers and buyers in Southeast Asia. A few buyer sources said that this level is also high for them.
Offers for ex-Iran slabs have been heard at $420-430/mt CFR, similar to the previous level. But bids have not exceeded $410/mt CFR.
Sentiments in the HRC market in Asia have remained weak. The latest deals for ex-China SAE1006 HRC were signed at $470/mt CFR Vietnam this week, $5/mt below deals prices last week. Most buyers’ price ideas have slipped to $460-465/mt CFR. “The main problem in the HRC market is not the price but demand as no one wants to buy any tonnage,” a flat steel producer from Taiwan told SteelOrbis.
The SteelOrbis reference price for slabs in Asia has moved down by $5-10/mt over the past week to $430-435/mt CFR.