The East Asian slab market remains stagnant as demand for hot rolled coil (HRC) remains weak. Buyers are showing little interest in the market and some re-rollers are trying to take bookings at prices significantly lower than current offers.
In Taiwan, importers are aiming to receive
A local factory source said that the current target price for slab has dropped to as low as $450 per tonne cfr Taiwan.
Taiwanese producers are officially offering $570/t FOB (free on board) for SAE 1006 HRC, but trade sources in Singapore and Vietnam reported last week that Taiwanese SAE 1006 HRC was offered at $570/t CFR Vietnam for July shipment.
Current HRC price levels are below $600/t CFR
A trader in Taipei noted that buyers are likely to look for prices below $500/ton cfr Taiwan as current HRC prices are below $600/ton cfr. However, the trader emphasized that $450/ton cfr is extremely low.
Buying interest wanes in other regions, offers target European market
A trader in Jakarta said that no one is buying slabs at the moment. He described the flat steel market as "very weak" and was not sure about price levels or who would be interested in buying. Indonesian slab is reportedly being offered at $535 per tonne fob and Malaysian slab at $580 per tonne fob. According to the trader's observations, these offers seem to be targeting the European market.
Comments
No comment yet.