Posted on 17 Mar 2021
Slab export offers to Southeast Asia have soared, Kallanish notes. However, regional buyers are slow to accede to higher asking prices, meaning trading has been limited. Iranian slab is the more affordable option compared to Russian slab.
A regional trader says that Russian coil-making slab should be priced at around $700/tonne cfr in the region, and he understands that a Russian mill is offering slab at $715/t cfr Indonesia. Russian slab offers for May shipment were prevailing at around $650-660/t cfr Southeast Asia in early February.
Buyers find it difficult to accept prices at above $700/t cfr, a Jakarta trader says. "We are slow to follow the international market," he adds. Russian slab bookings in January/February concluded at around $640/t cfr Indonesia for May shipment. Iranian slab is currently offered at $670/t cfr Indonesia. The Southeast Asian market is not a top priority for CIS suppliers at present, a trader close to a Russian mill says. Latin America – Mexico and Brazil – Turkey and Italy are better-paying markets, he adds.
Amid the softening iron ore and scrap trend, buyers would find it difficult to consider paying for slab at $720/t cfr, a Taiwanese trader says. He believes that a Taiwanese re-roller would buy slab at $660/t cfr if it could buy Iranian material. But the regional trader says that the re-roller is unlikely to take the risk of buying Iranian steel because the Taiwanese re-roller has sales to the USA and Europe.
Last week in Thailand, Iranian slab was offered at $657/t cfr. The Russian mill was also offering material at $720/t cfr, whereas another Russian mill’s offer was lower, at $670/t cfr, says a Thai trader who did not hear of concluded deals. Thai buyers are already “struggling” to accept the lower-priced offers, he says. Thai re-rollers are reluctant to chase after slab prices because they are uncertain on whether steel prices will remain high and for how long, another says.
Source:Kallanish
