The leading Indonesian mill has managed to sell some volumes of billets at up to $31/mt higher since the middle of last week amid the sharp rises seen in the Chinese market on Friday and especially on Monday this week.
After the surge in China’s steel export prices by $15-50/mt depending on the product on Monday, the latest deal for around 20,000 mt of ex-Indonesia billet was done at $481/mt FOB for January shipment, also on September 30, according to sources. But the final volume has remained unclear by the time of publication. Some additional small volume is also heard to have been sold to a trader in the “low $480s/mt,” a source said. Though some market sources heard that up to 50,000 mt of billet were sold on Monday at $480/mt FOB and above, most market sources agree that this volume is too high as traders are cautious as regards booking for January shipment. “They [Indonesian mill] were selling 20,000-30,000 per day on Friday and Monday before the holiday started,” a Singapore-based source said.
On Friday, a deal for 10,000-20,000 mt of billet was confirmed at $460-465/mt FOB. In general, prices rose by slightly over $30/mt compared to the previous confirmed deal in the middle of last week at $450/mt FOB.
Also, on Monday, ex-Indonesia wire rod was sold at $505/mt FOB, while last week a deal from the same seller was at $478/mt FOB. Even the sharp increase in prices from Indonesia did not stop buyers, as Chinese wire rod offers had hit $510-520/mt FOB at the lowest before the holidays.
An offer from the Vietnamese mill for 3SP billet has been heard at $500/mt FOB, being so high also due to the closer shipment date, which is November.
Market sources are waiting for new prices from Malaysia, but no new offers have been voiced after a deal at around $450-455/mt FOB was reported last week. “They will target $490/mt FOB, I guess. But let’s see how China will return [from the holiday],” an international trader said.
İn the import billet market in Southeast Asia, all offers have hit and exceeded the $500/mt CFR mark, versus last week’s reference prices of $460-470/mt CFR. An offer for ex-ASEAN 5SP material has been heard at $505-510/mt CFR Manila.