Posted on 31 May 2023
The East Asian merchant slab market is languishing mainly due to the bearish outlook for hot rolled coil. Buying interest is very thin and some re-rollers are targeting to book at much lower than current offers.
In Taiwan, importers are targeting to book slab at under $500/tonne cfr, while an offer for Russian slab was heard last week at $500/t cfr Taiwan. “The current target price for slab is as low as $450/t cfr Taiwan,” a regional mill source tells Kallanish. While Taiwanese mills are officially offering SAE 1006 HRC at $570/t fob, trading sources in Singapore and Vietnam hear Taiwanese SAE 1006 HRC was offered late last week for July shipment at $570/t cfr Vietnam.
“I believe buyers’ price idea is definitely below $500 because HRC price levels today are below $600/t cfr,” a Taipei trader says. “But $450/t cfr is really low.” He adds he has not heard of any bids or offers in Taiwan recently.
Buying interest has waned elsewhere too. “Nobody is buying,” a trader in Jakarta notes. The flat steel market is “very bad, so I have no idea who wants to buy nor the price level,” he says. Indonesian slab is heard offered at $535/t fob and Malaysian slab at $580/t fob. The offers appear to be targeting Europe, the trader observes.
Source:Kallanish
