The uptrend in the Asian billet market has continued amid further gradual increases in China and mills based in the ASEAN region have been following the trend.
Official offers for ex-Indonesia billet have been announced at $440/mt FOB, up by $2/mt today, February 19 from the previous day. The new level has been confirmed in one deal today, according to market sources. “It seems that, after they sold at $433/mt and $438/mt FOB, they are now looking for higher levels,” a source said. Also, offer prices for Indonesian slabs have risen by $5/mt from yesterday to $435/mt FOB. The Indonesian mill is offering all products for April shipment.
The ex-China reference billet price has increased by $5/mt on average from yesterday and by $7.5/mt over the past week to $440-450/mt FOB. Market sources said that most firm offers are at $445/mt FOB or above “as suppliers follow the local market,” a trader said. “The Chinese steel market is firm with better demand and mills’ margins have reached a four-month high. The supply and demand situation is balanced,” another Chinese trader said. Also, today, the People’s Bank of China (PBOC) conducted a RMB 538.9 billion ($75 billion) seven-day reverse repo at an interest rate of 1.5 percent, aiming to keep liquidity in the banking system at an adequate level, the bank said.
