Most Asian billet suppliers have remained bullish this week, but unlike the previous week buyers have been showing more resistance.
The leading Indonesian mill has increased offers by $10/mt in total compared to late last week to $495/mt FOB for June shipment. The producer hiked offers for slabs, HRC and wire rod by the same amount, indicating its general bullish mood. “There were no sales after the previous deals to the Middle East [to Oman and the UAE at $485-490/mt FOB last week], but they are targeting further sales to this destination. There is no way to stay in Southeast Asia,” an Asian trader said.
The reference price for ex-China billet has been stable at $460-475/mt FOB, though some sellers have been targeting $475/mt FOB, while some that failed to sell in the previous round of booking activity were ready for $460-465/mt CFR.
In Southeast Asia, suppliers have been targeting $500/mt CFR for 5SP billet in the Philippines, but “in March they provided some discounts. Let’s see what will happen in April. I think buyers will get the same $490/mt CFR [Manila as done a week ago],” a trader said. In addition to deals done at $480-490/mt CFR in Thailand and Taiwan in the previous round of sales, a sale to Indonesia was also disclosed as having been done at $485-487/mt CFR last week.
