Billet prices have increased sharply in the latest deals in Asia; however, many customers, in China in particular, have still been resisting the uptrend, saying that the price hike has been too high and so bids are still at lower levels.
More than 100,000 mt of billet from a Far East Russian steel mill was traded at $435-445/mt CFR to the Philippines and Taiwan late last week. This level is $10-15/mt above the SteelOrbis reference price last week. However, a number of sources have confirmed that such a high level has been reached as some tonnages have included 100 mm billet and semis with high vanadium content. Moreover, a deal for ex-CIS billet produced by another CIS-based mill has been done at about $430/mt CFR to Southeast Asia recently. “SteelAsia is in negotiations,” a trader said. The workable price level is assessed at $430-435/mt CFR Philippines, SteelOrbis has learned.
Bids from Indonesia and Thailand have been at lower levels, at $420-425/mt CFR for billet, except for billet from Iran. “There are offers at $425/mt CFR and a deal is possible at this level,” a Jakarta-based source said.
Offers for ex-Iran billet have been heard at $425-430/mt CFR Thailand for February shipment, which have been too high for customers, as traditionally the price gap for ex-Iran and other suppliers’ billet offers is about $15/mt.
Trading activity in the Chinese import billet market has been subdued. There have been rumours in the market that a trader sold Indian-origin material which was purchased earlier at $425/mt CFR China, but this information has not been confirmed by the time of publication. CIS-based still producers from the Black Sea region have been targeting sales to China, but they have failed to conclude deals so far as bids are coming at $425/mt CFR maximum, one of the suppliers said. This level corresponds to $390/mt FOB and below, while the target prices are at $400-405/mt FOB Black Sea.
