Asian billet prices have remained at stable high levels after the increases seen last week amid stable conditions in the local Chinese market, but buyers have been more willing to conclude deals, understanding that there will be no declines in the near future.
Ex-China billet prices are at $440-445/mt FOB, unchanged from last Friday. “Today Chinese steel is stable both in the paper and physical markets... Mills are controlling supply, and no active buying happened. The market has no outstanding problem, and the next month’s firm outlook provides support to the current prices,” a Chinese trader noted. Though most market sources do not expect active restocking in January ahead of the Chinese New Year holiday in the second half of February, they do not expect any price correction during that time either.
The Indonesian mill is still offering billet at $450/mt FOB for April shipment, while its slab price is at $455/mt FOB.
In Southeast Asia’s import billet market, buyers have been more eager to place orders. One deal has been heard at $460/mt CFR for Chinese 3SP in Thailand this week, which is in line with offers last week, but higher than buyers’ previous targets at $445-450/mt CFR seen in late December. In the Philippines, offers for 5SP have been starting from $465/mt CFR. “Now if the buyer can find $460/mt CFR, it seems a fair price,” a Manila-based source said.
Some Asian buyers - in Taiwan, in particular - are still looking for $455/mt CFR for Asian origin billets, but they have not been able to find any offers below $460/mt CFR for 3SP.
The lowest prices in the Asian region are from the Russian Far East seller, who can still give $440/mt CFR Taiwan. Such low levels are explained by the limited choices for sales of Russian steel due to sanctions and the still high availability of Russian steel. The indicative price for ex-Iran billet in Southeast Asia is standing at $450/mt CFR with no active negotiations heard.
