The uncertainty regarding the price trend in China has continued to impact the billet market in Asia. Though some Chinese and ASEAN suppliers have been aiming for some slight increase since late last week, in the major sales destinations they have failed to achieve this and have had to return to numbers seen before the holiday.
The ex-China reference billet price of SteelOrbis has been corrected down by $2.5/mt on average to $435-440/mt FOB today, February 11. Most offers seen last week at $445/mt FOB are at $440/mt FOB at the moment and to sign a deal additional small discounts are possible, according to market sources. “Today things are coming down due to the tariff issues, even though significant direct trade [between the US and China] was already absent. This is going to have a major effect on Mexico and Canada,” a Singapore-based trader said, explaining the worsening sentiments in Asia. “It is obvious that steel demand is still lagging behind in China in February and higher inventory is depressing the price… The steel market is negative without more support policies,” a Chinese trader said.
A few small-volume deals have been reported for Chinese 3SP 150 mm billets at $460/mt CFR, mainly to the Philippines, but some said to Indonesia as well, though this could not be confirmed by the time of publication. This is more or less in line with offers and last week’s reference price, though some sources believe that the price is on the high side and for 3SP buyers in Southeast Asia have been mainly targeting $440-450/mt CFR. “I would say that, compared to Russia and Iran, China is less competitive now. But if someone needs to buy right now, it is possible,” another Chinese trader said.
The leading Indonesian mill has announced an official offer for April shipment billet at $443/mt FOB today, on February 11, similar to the level in late January before the Chinese New Year holiday. This is down from $447/mt FOB voiced by the producer on Friday, February 7, and slightly lower than $445/mt FOB announced on February 5. “Dexin is still less competitive. China is more active in sales,” a Manila-based trader said.
Contrary to billets, the Indonesian producer has announced $5/mt higher offers for slabs - to $435/mt FOB. This is still in line with the level seen a month ago though.
Malaysian billet offers are at $450/mt FOB mainly, remaining relatively stable over the past week.