Offers for ex-China billet from some sellers have posted a small increase early this week amid cost pressure and a stronger yuan. But generally, the market does not see any change in bids so far and sales from China are at a standstill, though some other Asian suppliers have managed to sign rare deals.
The SteelOrbis reference price for ex-China billet has settled at $470-480/mt FOB, up by $5/mt on the higher end of the range. A few market sources have reported offers at $480-485/mt FOB from major Chinese exporters, while some traders in Tianjin have been quoting lower prices - at $473-480/mt FOB. The lower end of the range ($470/mt FOB) is still assessed as the highest tradable level for most buyers. “The raw material prices, especially [local] coking coal, have increased due to the coal mining accident, and freight is also increasing,” one of the major Chinese traders commented.
At the same time, the major Indonesian producer has cut its offer by $5/mt to $485/mt FOB. And this level has been fixed in a deal for September shipment with the trader taking this position, targeting the GCC market. The new offer from the mill is for October shipment, though some traders report that September can be found. “Dexin has sold some to the Middle East, but that’s because they have the certifications needed,” a Singapore-based source said.
Also, around 60,000 mt of Indian billet that were on offer under the tender from RINL last week were sold at around $470/mt FOB. Some part of this volume is already under negotiation for the UAE market.
