The downtrend in Asian billet export prices has continued this week after some stabilization previously as the pressure on exporters has been increasing due to the near absence of activity lately and the negative trend locally in China.
The SteelOrbis reference price for ex-China 3SP billet stands at $465-470/mt FOB for August shipment, down by $5/mt over the past week. “I don’t see any activity now, and the sentiment in general is not good. I think there could be deals if firm bids emerge at $460-465/mt FOB,” a Chinese trader commented. There have been no new negotiations in the GCC after a sale at $527/mt CFR to Saudi Arabia, and one Chinese exporter commented that the problem is not the price itself but shipment, since a lot of quantities have been booked and buyers are waiting for them to arrive.
The Indonesian mill has cut its September offers for billet by $3/mt to $480/mt FOB, also reflecting the weakness in the market, even though the producer is not very eager to sell now.
There is still some focus on Iranian billets in Asia, with the latest offers heard at $475-480/mt CFR Southeast Asia. “This level is not a firm offer. Sellers/traders are only fishing for interest in levels that can work in Southeast Asia,” a Singapore-based source said.
