Prices for ex-ASEAN billet have been fixed at lower levels in the latest deals and offers. However, given the rebound in futures and spot prices in China today, June 1, suppliers from the ASEAN region have become more cautious and will prepare for increases if the trends in China are sustained.
The leading Indonesian mill has dropped its offers to $490/mt FOB, from $500-505/mt FOB reported earlier this week, trying to push volumes, and a few market sources report that this level was fixed in a deal, though no further information is available about the expected sales destination. “The price is the same today, but we are watching the market,” a Chinese trader told SteelOrbis on June 1. “But maybe futures will continue to strengthen tomorrow and we will not see these prices anymore,” an international trader said.
In addition, a few deals for ex-Malaysia billet have been confirmed at $495-505/mt FOB for June-July shipment, while earlier in the week mills’ official offers were at $510/mt FOB at the lowest. “One sale was for June, which means the supplier had some volume to clear, but now August shipment prices will be in focus,” one Asian trader said.
As for today, offers for billet of Chinese origin in the export market have been limited at stable levels of $490-500/mt FOB, but suppliers have mainly withdrawn from the market amid sharp rises in futures prices in China today. As of Thursday, June 1, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,546/mt ($500/mt), increasing by RMB 114/mt ($36.2/mt) or up 3.32 percent since May 25, while rising by 2.84 percent compared to May 31.