The major suppliers from the ASEAN region have continued to push up billet prices in China, and, though the sentiment in the market is still positive, traders are more cautious in purchases with excessively long lead times and for shipment in December.
Offers for ex-Vietnam billet have been reported at $735/mt CFR, while an Indonesian mill has been asking for $730/mt CFR minimum. Most offers from the two major producers from these countries are for December shipment or late November at best, sources have said.
Other suppliers are asking for $716-725/mt CFR in China now, but, even taking into account the presence of prices lower than $720/mt CFR, they are for December shipment material and with voyage times and quarantines, the delivery to buyers could be in the middle of January or so. Accordingly, buyers are not so interested in purchases, but are seeking nearer delivery dates.
In addition, the rapid price increase by $30/mt over the past week has made market sources cautious in their expectations as they see that speculation has started in the market.
Late last week, the deal price level for import billet reached $720/mt CFR.
The local billet price in Tangshan has increased by RMB 50/mt ($8/mt) over the weekend to RMB 5,250/mt ($814/mt), which corresponds to $720/mt, excluding 13 percent VAT.
$1 = RMB 6.4497