Ex-China and ex-ASEAN billet prices have posted further declines this week with some active negotiations held in the regional market and in the MENA region. However, market sources agree that this may be the bottom for some time.
The SteelOrbis reference price for ex-China billet has lost $5/mt over the past week, coming to $450-455/mt FOB. A deal has been heard at the lower end of the range, but some Chinese traders have been selling in short positions as they expect prices will reach the bottom at around $442-445/mt FOB. “Demand is bad, yes, but deals are mainly done by traders. Prices may be not at the bottom, but are close to it,” a Chinese trader commented.
According to market sources, a sale for Chinese billet has been rumored to Turkey at below the $500/mt CFR mark, which translates to slightly below $450/mt on FOB basis. But this has remained unconfirmed by the time of publication.
At the same time, in Southeast Asia, a contract for Chinese 5SP billet for August shipment is heard to have been done at $469/mt CFR to Indonesia last week, while last week there were no ex-China offers in the region below $477-478/mt CFR. The price is assessed as very low and possible only from a trader in a short position, market sources said. Also, some already shipped material has been on offer in Indonesia at $460/mt CFR for 3SP billet. Most buyers in the Philippines have denied these low-priced levels are widely available in Southeast Asia. “We still see all offers at $480/mt CFR and higher,” a Manila-based source said.
The Indonesian mill has been offering for October shipment at $456/mt FOB, down by $4/mt from last week. Though no new trades have been confirmed for billet, at least one lot of Indonesian slabs is heard to have been sold at $460/mt FOB to India. The price is $10/mt lower than that voiced by the mill last week.
