Slab prices keep softening, though Asian flat steel market improves

Friday, 22 March 2024 15:55:57 (GMT+3)   |   Istanbul
       

Prices from major slab exporters in the global market have softened further this week as suppliers have been trying to accelerate sales. A few deals have been done at lower levels, though demand in general has not been very strong, even though HRC prices in Asia have started to rebound.

The leading Indonesian and Malaysian mills have cut offers to $530-540/mt FOB, down further by $20-30/mt after the fall by $30/mt registered last week. One deal for ex-Indonesia slabs has been done at this level, translating to $570-580/mt CFR. Last week, the price level for HRC grade slabs was at $590-600/mt CFR Italy. Also, there has been information about a deal from the Vietnamese mill at around $535-540/mt FOB, with the sales destination also said to be Europe, while the previous booking from the mill was at $550/mt FOB. However, by the end of the week, offers from Vietnam have rebounded to $540-550/mt FOB officially, following rises in HRC prices in the Asian market.

Offers from major Chinese mills for plate grade slabs have been at $590-610/mt CFR Europe this week, versus $610-615/mt CFR last week. The rebound in the local Chinese market has prevented slab offers to soften more. Even though there are strong signs that prices may improve further, buyers are mainly reluctant to purchase.

There are also rumors that Indian mills may return to the slab export market, given the higher supply and the lack of improvement in local demand.

Asian slab offers have been too high for Turkish buyers. The last deal for a non-sanctioned Russian mill has been heard at $560/mt CFR, down by $20/mt from previous offers, but it was done at least a week ago, according to market sources. There has been a rumor about a deal for sanctioned Russian slabs at $490/mt CFR, down sharply from the previous $525/mt CFR contract from the same producer. But the information has been not confirmed by the time of publication and market sources have assessed this price level as being too low.

The latest price for import slabs in Asia has declined to $510-540/mt CFR, with the lower end of the range sliding by $5/mt and the higher end down by $20/mt over the past week. The levels of $510-520/mt CFR are available for Iranian and Russia material, being shipped from Far East ports.


Tags: Slab Semis Asia 

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