Asian billet export prices have continued to surge today, July 22, and have hit and exceeded $450/mt FOB. Trading has been halted as not only buyers have been staying away, but sellers have also been inactive in giving firm offers.
The ex-China billet reference price has been increased by SteelOrbis to $450-460/mt FOB, up by $10/mt from yesterday and up $20/mt since Friday. “Even if there is no demand for billet in the export market, futures are surging, so we see this crazy hike [in offers],” a Singapore-based source said. The main reasons for the uptrend are the continued talk about supply reform in the steel industry and cost support amid higher raw material prices, not only iron ore this time, but also prices of coking coal and coke in the local market in China.
In this situation, most Chinese traders have been reluctant to give firm offers in the export market, understanding that there will be no response from buyers, and that the focus should be on the local Chinese market and futures. “There are offers at $470/mt CFR Manila, and we don’t care if it is for 3SP or 5SP [which is at least $5/mt more expensive], as the workable level is still $440/mt CFR top,” an importer from Southeast Asia said.
In Turkey and the GCC, offers for Chinese billets have also been rare at $485-500/mt CFR today. “This is crazy high for the stable Turkish market,” a Turkish mill said.
The Indonesian mill has hiked its billet and slab offers by $8/mt today to $455/mt FOB for October shipment, after an increase by $7/mt yesterday.
