Prices for ex-Asia billet and slabs have increased in early January, amid much more positive sentiments in China after the official announcement of a “moderately loose” policy in China in 2026. In such conditions, overall offer volumes of billets have been rather limited as some ASEAN mills have longer lead times with March shipment sold out, while some Chinese sellers have been focusing on their local market or have already made commitments.
The ex-China billet reference price has increased by $5/mt today, January 7, to $435-445/mt FOB, with most offers being at the higher end of the range. The tradable level has been assessed at $435-440/mt FOB, but “not many offers have been heard from China recently. Traders are dealing with resolving issues linked to non-VAT and licenses,” a Chinese trader said.
The main reason behind today’s rebound in the Chinese steel market is the loose monetary policy officially announced by the Chinese authorities for 2026 and the surge in raw material prices. “Raw materials are stronger with iron ore futures adding 4.09 percent and coking coal and coke rising to their maximum limits today. So, cost support is very strong and will prevent steel prices from falling,” another Chinese source noted.
The Indonesian mill has increased its billet offers for April shipment to $450/mt FOB, up by $8-10/mt from that voiced in late December. Some Vietnamese suppliers may offer at $450-455/mt FOB for March shipment.
Also, slab offers from Indonesia have jumped to $450/mt FOB as well and they have also been voiced for April shipment after a few sales for March shipment done over the past ten days. In particular, the Indonesian mill sold March shipment slabs to a trader at $445/mt FOB. Also, a Chinese exporter has signed a contract for 30,000 mt of slabs at $460/mt CFR Indonesia, while a Vietnamese mill has also traded a similar tonnage of HRC grade slabs at $457/mt CFR Indonesia. These CFR prices are not workable anymore after today’s Chinese market increase, sources said.
