Prices for Asian slabs have softened in some destinations over the past fortnight, as confirmed by rare deals. However, for some other destinations, sellers kept offers stable, while for one market - Europe - prices have even posted a significant increase.
Ex-Asia slab offers have been reported at $447-455/mt FOB, versus $455-460/mt FOB seen in early October. One contract for 30,000 mt of ex-Vietnam slabs was done at $447/mt FOB to Indonesia with the CFR price assessed at around $465-467/mt. The sale to this neighboring market is explained by the absence of allocation of local slabs in Indonesia for shipment up to the end of the year, following good order books in Indonesia for HRC exports, according to sources. The latest offer for ex-Indonesia slabs for January shipment was at $450/mt FOB. Also, Malaysia was not offering slabs actively, have also redirected volumes for HRC production.
At the same time, in Europe, where prices for HRC and plate have been moving up in October, most plate grade offers for Asian slabs have been at $530/mt CFR lately, up by $20/mt over the past fortnight. Among the lowest prices for import slabs were Brazilian offers at $500-510/mt CFR Italy. However, as a trader commented, “Nothing is sold. In Europe no one knows what to do because of CBAM as they delayed the announcement of the benchmark.”
Turkish buyers have been receiving HRC grade slabs offers from China at $470/mt CFR with no new deals reported. And the most competitive prices are still from sanctioned suppliers. One of the sanctioned Russian mills has offered at $430-440/mt CFR to Turkey.
The same Russian mill has been also offering to Southeast Asia at $440-445/mt CFR as attempts to increase prices by even $5/mt seen earlier in the month failed.