ASEAN region-based billet producers have been targeting sales to distant markets, seeing slow demand in their regional market and the decline in supply observed in Europe and Turkey, SteelOrbis has learned from the market early this week.
A number of market sources have reported an aggregate sale of 30,000 mt of billet by the major BOF-based producer in Indonesia to Europe at around $515-520/mt FOB. Some traders have said the price is $5/mt lower, but this could not be confirmed by the time of publication. The sales destinations are Germany and Poland, according to market information. “There are stoppages of mills in Germany due to the increase in energy costs, so it is not surprising,” a source said.
Also, 50,000 mt of ex-Indonesia billet were offered to Turkey at $590/mt CFR, which translates also to close to $520/mt FOB. Some sources said that the deal was done, though it has not been confirmed finally by the end of the day. This price seems workable after the sharp increase in energy costs in Turkey by 50 percent announced last week.
The deal price level is definitely lower than the suppliers’ previously targeted price in the distant markets at $540/mt FOB minimum, but it is definitely better than bids from the regional importers, even though the freight within the ASEAN region is lower.
Another sales destination for ex-ASEAN suppliers is Africa, where negotiations at above $520/mt FOB were taking place. Customers from Latin America have been out of the market so far.
After abovementioned sales, offers from Indonesia have increased to $530/mt FOB at the lowest, SteelOrbis has learned.
In the ASEAN regional market, bid prices have been at $530/mt CFR at the highest in the Philippines, which translates to $500-505/mt FOB. While buyers in Indonesia or Thailand can pay only $510-520/mt CFR for imported billet for now with the freight at about $20/mt inside the region to these countries.