Asian billet export prices have indicated little movement this week, with only a small decline in price seen early in the week. Since China has a short holiday late this week and as futures prices declined first though indicating some improvement today, the trend in Asia has remained uneven and the long-awaited improvement in the market has been postponed once again.
The SteelOrbis reference price for ex-China billet has settled at $430-445/mt FOB with the midpoint at $437.5/mt FOB, stable since yesterday, but slightly down by $2.5/mt on average since last Friday. “Some restocking happened in the rebar market with local daily trading over 150,000 mt... But the market is observing the final news about US tariffs and the Chinese steel market is in holiday mood,” a Chinese trader noted. China will be on holiday for the Qingming Festival on April 4-6.
A few traders have said that offers are mainly at $440-445/mt FOB from China, but there is a possibility that the tradable level may improve from the current $430-435/mt FOB amid news about new tax regulations on exports from China, which will impact non-VAT trading of wire rod.
An Indonesian mill cut its billet offer by $5/mt on Monday to $450/mt FOB for June shipment. Market sources said that the negotiable price could be $445/mt FOB, but the mill is not very aggressive, waiting for the trend to settle in China. Offer for ex-Indonesia slabs have lost $10/mt over the past week to $465/mt FOB also for June shipment, while ex-Indonesia wire rod has been stable at $495/mt FOB as order books for June are closed.
