Chinese customers have been rejecting offers at $430-435/mt CFR for non-Southeast Asian billets, saying that they have already booked big volumes and domestic prices are not high enough. Moreover, demand is expected to go down sharply in the fourth quarter and traders are cautious as regards purchases of imported semis, which will be delivered in late October-November.
The latest contract for Indian billet has been closed at $427/mt CFR China after the previous deal from India at $424/mt CFR. This price level has been quite acceptable, taking into account bookings for Southeast Asain billet.
As SteelOrbis reported last week, ex-Vietnam billet was sold at $435/mt CFR China. In addition to this, information about a deal from Indonesia at the same price has been disclosed this week. “This $427/mt [CFR for Indian billet] is the market price, but I doubt that someone will pay higher,” a local trader said.
Today, August 11, average billet prices in the spot market in China have risen by RMB 7/mt ($1/mt) to RMB 3,490/mt ex-warehouse, according to SteelOrbis’ information.
