The Asian billet market has posted some signs of stabilization after the previous rises triggered by higher production and transportation costs due to the war in the Middle East. This has been confirmed in a few additional deals disclosed lately as having been done this week.
After a 50,000 mt billet sale from the Indonesian mill at $485/mt FOB to Oman for May shipment reported early this week, another lot of 50,000 mt is heard to have been traded to the UAE. The price has been heard at almost the same level on FOB basis - $485-490/mt FOB, according to a few sources. And today’s official offers from the Indonesian mill have also remained stable at $485/mt FOB for June shipment. “We have certificates and see some demand there,” a producer commented.
On CFR basis, the sale to the UAE has been assessed by market sources at $535/mt CFR due to higher transportation cost and war-related risks. The sale to Oman is heard to have been done at $525/mt CFR or just slightly above.
“The Middle East market is hot. First Oman and now the deal heard to the UAE. It looks like they believe Iranian cargoes will be out of the market for some time,” an Asian trader said. Also, shortage of pig iron and HBI in the spot market has added to the increased interest in billets.
Offers for Chinese billets to Saudi Arabia have been heard at $525-530/mt CFR this week.
In Southeast Asia’s import billet market, demand has still been seen from Thailand. A mixed cargo of Chinese 150 mm 3SP billet with 0.4 percent manganese and 150 mm 5SP billet with 0.6 percent manganese has been sold at $487/mt CFR on average for May shipment. This also reflects some stabilization of the market with deals earlier reported to the Philippines and Taiwan at up to $490/mt CFR for both 5SP and 3SP. The SteelOrbis reference price for import billet in Southeast Asia stands at $485-495/mt CFR, stable from what was reported earlier this week, but up by $7/5/mt week on week.
