International Steel Market Daily: Southeast Asian Slab Prices Have Experienced A Significant Monthly Decline. Some Buyers Are Cautious And Watching Russia’s Low-priced Resources

According to the latest information, the mainstream price of imported slabs from Southeast Asia with specifications of SAE1008/SAE 1006 is about $530/ton CFR, with a month on month decrease of about $10/ton.

  At present, a mainstream steel mill in Indonesia is quoting $500/ton FOB for square billets with a specification of 3sp, and $510/ton for slab billets, a decrease of $20/ton on a month on month basis. Some market participants have stated that although overall market activity has increased and transactions have improved in May, the Indonesian steel currently does not accept bargaining and only accepts a bargaining space of $5 per ton for square billets. Southeast Asian steel mills have quoted a price of 545 US dollars per ton of CFR Indonesian for slabs with SPHC specifications, and the buyer’s counteroffer is approximately 530 US dollars per ton of CFR.

  There are steel mills in Malaysia offering a FOB price of $530 per ton for slab production, and it is rumored that some resources have been sold to Thailand. Malaysian steel mills have stated that they plan to invest some of their rolling lines in hot coil production in the future, but this production plan currently does not affect the sales quota of slabs. It is expected to adjust the production line to produce hot coils starting in October, and it is expected to take about 1-2 months to achieve large-scale production of hot coils.

  In contrast, steel mills in Russia currently have an advantage in quoting sanctioned steel, with Russian sanctioned steel mills quoting $510 per ton CFR Jakarta. Although the price is relatively low, some Southeast Asian buyers are still cautious in purchasing steel made from sanctioned Russian semi-finished materials, considering the potential issues of subsequent sales and market acceptance.