Posted on 18 Jul 2018
The slab import market in Southeast Asia has rebounded this month, Kallanish notes. In the past month, the reappearance of Ukrainian slab surprised regional trading sources.
An Indonesian re-roller booked 40,000 tonnes of Russian coil-making slab last week at $545/tonne cfr. The ordered cargo was for September shipment. The re-roller booked slab from another Russian supplier at $537/t cfr last month.
“Prices have moved up,” a trader says. Russian mills were seeking to sell to the re-roller at $553-555/t cfr Indonesia. “There is good demand for slab including Turkey,” a trader says. “The coil market is healthy,” he adds.
Meanwhile, Ukrainian slab has resurfaced in the region in the past month at competitive prices. Buyers did not pay much attention to these offers initially because of their long absence in Asia. "People doubted how serious these offers were," a regional trader says.
Ukrainian slab was offered in mid-June at $550/t cfr Thailand and higher, a Bangkok trader says. There was little interest because buyers were keener on Iranian slab which was offered at $10-20/t lower.
A Thai re-roller recently ordered 30,000t of slab at $535/t cfr. A Thai trader heard that the slab booked was Russian, but many others believe it was for Ukrainian slab because Russian mills are offering at higher prices.
Offers for Ukrainian slab were at $540/t cfr Indonesia last week so a deal at $535/t cfr to Thailand would make sense, says the trader who attributed the cost difference to freight.
“Iran is more or less out of the market, so Russian slab prices can be adjusted upwards,” a Taipei trader says. The last order for Iranian slab to Thailand was for August shipment, the Bangkok trader says. Another trader says he last saw Iranian slab offered at $540/t cfr Thailand two weeks ago. "There is nothing now," he says.
Ukrainian slab was offered in mid-June at the minimum of $550/t cfr Thailand, a Bangkok trader says. There was little interest because Iranian slab was offered at $10-20/t lower at that time.
