The Asian billet market has reopened after the long holiday in China with rather stable prices, while some market participants have not yet returned and are expected to resume negotiations only by the end of next week. Weak demand and the lack of a strong outlook in China may result in some price declines by mid-October, sources believe.
The reference price for ex-China billet stands at $430-435/mt FOB today, October 9, stable compared to the previous trading day on September 30, while the average local billet price has posted a very small change, down by just RMB 3/mt to RMB 2,975/mt ($418/mt) ex-warehouse. “China has opened in a very lukewarm manner,” a Singapore-based trader said. “General conditions are still weak, local demand has not picked up, inventory is higher and mills’ outputs are unchanged,” a Chinese trader noted, adding that mills selling billet are at breakeven point.
The Indonesian mill is also offering billet at a stable price, at $435/mt FOB for December shipment.
In Southeast Asia’s import market, the latest offer prices for 5SP billet in the Philippines are at $455-460/mt CFR, but “nobody is chasing billet when China is not offering actively. Prices are expected to go down,” a Manila-based source said.
Buyers’ price idea for 3SP is below $450/mt CFR, market sources say, while offers from Asian suppliers are rare and this level is possible only from some sanctioned suppliers from Russia or Iran.
$1 = RMB 7.1102
