Posted on 22 Jan 2025
Slab import prices have fallen sharply in ASEAN when compared to billet, Kallanish notes, linked to weak demand for finished flat products.
A leading Indonesian mill lowered its price for February shipments of slab on Monday to $430/t fob. The $5/t drop surprised some market sources in Indonesia who believed that the rise in the Chinese steel futures would have given some support to regional steel markets. But others say that the price cut is expected due to poor demand for slab. “They do not have enough slab orders,” a Jakarta-based trader notes.
Plate-making slab from Vietnam and Oman should be priced at around $450/t cfr, importing sources in Indonesia say. “Maybe they are feeling the competition from Vietnam,” a buyer says. Iranian semis are believed to be declared as Oman semis in the region.
The Indonesian mill’s slab exports are for commercial-grade slab for rerolling, a Thai trader says. He and the Indonesian buyer says that plate-grade slab are typically sold with an extra charge of $10-15/t depending on manganese content. Freight from the Indonesian mill is estimated at $15-20/t to Java island.
The mill is currently offering further-ahead April shipments for billet and low-carbon wire rod indicating better sales for these products. It hiked its 3sp grade 150mm billet by $8/t to $445/t fob last Friday. It has maintained its 6.5mm wire rod export price at $470/t fob this month.
The price gap of $15/t between the Indonesian mill’s billet and slab is “a lot,” a second Jakarta trader said. This is due to the difference in prices for the semis’ final products, with domestic demand in Indonesia is poor because of the approaching fasting month in March, they add.
An Indonesian trader hears a certain mill switching to more production of billet from slab because billet currently fetch higher prices than slab.
Source:Kallanish
