China has remained the main buyer of imported billet in the Asian region. Though prices have posted minor increases, sentiment is mainly positive and sources are hoping for a further hike. At the same time, demand for billet in Southeast Asia has remained slack and bids have been low.
A contract for 25,000 mt of 125 mm billet from Russia’s Far East region has been signed at $412/mt CFR China this week. The previous contracts and bids were at slightly higher levels and sources have said that there is no now possibility of buying 150 mm billet at below $415/mt CFR. According to some sources, last week one Ukrainian mill sold another lot to China at $415/mt CFR, but this has not been confirmed so far and at the moment offers for ex-CIS material are higher. Billet from Russia’s Far East Russia is available at $420/mt CFR, while billet from the Black Sea region is available at not below $425/mt CFR.
Also, there has been information about a contract from a major supplier from Indonesia to China at $426/mt CFR, which is $3/mt above the previous contract price for Southeast Asian origin billet. Some sources said that the price level in the contract was as high as $430/mt CFR, but there has been no confirmation so far.
An Indian mill has claimed a sale at $419/mt CFR China this week, but Chinese traders said that this level is pretty high in general for customers.
“The [suppliers’] target is $420/mt CFR. It can be reached soon,” a trader said, which reflects the general opinion in the market.
In Southeast Asia, demand has not improved from last week. Only one deal has been heard at the level of $405/mt CFR Manila over the past week. The billet has been of Vietnamese or Indian origin (from induction furnaces), sources have said. “The rainy season is here. Moreover, many construction projects are still halted,” a re-roller from the Philippines said. The number of billet offers has remained limited in Southeast Asia this week as most sellers have been focusing on China.
Offers for Iranian billet have been at $407-410/mt CFR Thailand, with no interest from buyers. At the same time, a deal for billet of this origin to China has been rumoured at this level.