Slab prices in Southeast Asia picked up July 30, rising for the third consecutive month, as higher offers from several origins pushed the market upwards amid limited allocation, even as buyers waited on the sidelines.

          S&P Global Platts assessed monthly prices of SAE1008, SAE1006 or equivalent grade base slab at $410-$420/mt CFR Southeast Asia, implying a midpoint of $415/mt, higher by $25/mt from June.

          Most market participants Platts spoke with highlighted paucity of offers and allocation to the Southeast Asia material leading to restricted supply, as most traditional sources of slab supply to the region remained inactive. Sources pointed out that allocation from Russian and Ukrainian suppliers was already sold out even for October shipment. with bulk of their bookings being concluded either to China or Europ. Similarly, Brazilian slab is likely to return to the region, after existing quota to the US is exhausted.

          Even though demand for slab continued being lukewarm in Southeast Asia amid ongoing COVID-19 related slowdown. A substantial uptick in downstream Asian HRC prices, recent increases in raw material prices, mainly iron ore, as well as remunerative prices of billets also contributed to higher slab offers, sources said.

          “Buyers are not desperate and are now looking for November shipment now, as demand from Europe is likely to go down with the onset of winter at that time,” an Indonesia-based buyer said.

          “Supply is tight and actual demand is slow, so there is potential for slab prices to increase further,” an Asian trader said.

-- Ashima Tyagi