While China’s billet import activity remains halted due to very low local prices, Chinese traders have been offering billets in the export market. for now, no confirmed deals for ex-China billet have been heard, but the price levels in offers have been close to the tradable level in Southeast Asia, which is going up slowly.
The latest deal for ex-Malaysia billet has been heard to the Philippines at around $810/mt CFR for May shipment, according to sources. This is up by $10/mt from a contract for ex-Japan billet reported last week. Also, another contract for prompt shipment has been heard at $820/mt CFR to the largest buyer in the Philippines, but this could not be confirmed by the time of publication.
At the same time, ex-China billet price ideas from traders have been at $820/mt CFR Southeast Asia. “The level makes sense but to export billets from China it isn’t technically legal to do so,” a source from Singapore said. Ex-Indonesia billet has been offered by Dexin at $820/mt CFR or slightly above since last week. Some people believe that it is safer to keep working with ex-ASEAN billet without risk, than to buy ex-China material at almost the same price.
The SteelOrbis reference price for import billet has increased slightly from $800/mt CFR late last week to $810/mt CFR. The lowest offer for import billet to the Philippines has been reported for IF billet from the ASEAN region at $765-770/mt CFR.
There were expectations that Chinese traders might purchase ex-Russia billet with payment in the Chinese currency for further sales to Southeast Asia, but for now there has been no confirmation of such contracts. The last sales directly from Russia’s Far East region were reported at $780/mt CFR to Manila, with no demand seen now. One trading source told SteelOrbis that the Philippines’ largest buyer “experienced disruption of some shipment ex-Russia.”
In terms of imports to China, the weakening of local steel prices has led to the continuation of the complete standstill of any negotiations. The tradable level and the reference price have been settled at $650-670/mt CFR, versus $660-680/mt CFR last week.
The average ex-warehouse billet price in China is at RMB 4,745/mt today, March 15, translating to $658/mt, excluding 13 percent VAT, according to SteelOrbis’ data. The price is down by RMB 140/mt or $22/mt over the past week.