Offer prices for ex-Asia billet have increased by up to $5/mt over the past week owing to rises in futures prices and the improved mood in China. However, most buyers are skeptical about a sustained price increase as some cheap offers from traders are still heard and there is no improvement in the fundamentals, with demand for longs still weak in Asia.
The SteelOrbis reference price has increased by $6/mt on average to $497-505/mt CFR, with the midpoint at $501/mt CFR, up by $3.5/mt from last week.
Offers for 5SP billet for open origin materials have been reported at $505/mt CFR Manila, while some offers for ex-ASEAN origin specifically have been at $507-510/mt CFR, up from $500/mt CFR at the lowest last week. “There is not much increase. Offers for 3SP are still not over $500/mt CFR,” a Manila-based source said.
Offers for 3SP billet to Thailand have been reported at $495/mt CFR, mainly for ex-China origin, up by $5/mt over the past week. “Market sentiment isn't great, so buyers won't chase the price,” a Bangkok-based source said. The previous deals to Indonesia were done at $497/mt CFR for 3SP and $503/mt CFR for 5SP. At the moment, a few short position offers are still heard at $495/mt CFR for 3SP. “The market prices have added a few dollars, but buying is based only on urgent needs. I don’t see much demand,” a Jakarta-based source said.
The ex-China 3SP billet reference price has increased again by $5/mt today, reaching $475-485/mt FOB. This translates to $495-505/mt CFR. “Cost support is sustained, and, in general, the rebar market is warmer with daily sales volumes up to early June levels,” a Chinese source said.
The latest offers for ex-Indonesia billet have been reported at $485/mt FOB after deals at $480/mt FOB and $482/mt FOB.