Ex-China billet prices have remained strong early this week, but market sources think that for the near future the current levels could be a ceiling. Other Asian suppliers, from Indonesia and India in particular, have also been active in the export market, targeting the GCC as a trade destination.
The SteelOrbis reference price for ex-China billet stands at $485-490/mt FOB today, May 12, $2.5/mt higher on average from late last week. But today, after some easing of futures prices in the Chinese market, a few traders said that it is possible to find $480/mt FOB if someone has a firm bid. “Raw materials are facing the same pressure and iron ore prices at ports are down by RMB 5-10/mt due to less demand, and coking coal futures have dropped faster than others [4.58 percent, while iron ore at Dalian Commodity Exchange lost 0.98 percent],” a Chinese trader noted.
There has been only one rumor for a sale of Chinese billet to Turkey recently, but this information has been disproved by a number of market sources. While offers have been generally stable at $535-540/mt CFR, the tradable level in Turkey is still assessed at $520-525/mt CFR at the highest. “I didn’t hear that Turkey bought, and their price definitely should be $10/mt below what we see in the GCC,” another Chinese trader said.
At the same time, negotiations for Asian billet in the GCC have been held mainly at $533-540/mt CFR. There has been information circulating in the market that India’s RINL closed a sale for 30,000-50,000 mt of 150 mm billet last week and, though most market sources agree that this should be for the GCC market, there has been no confirmation by the time of publication.
The Indonesian mill has started to offer billets for September shipment, while the offer price has remained at $490/mt FOB. Most market sources agree that most August allocation billets have been traded or “promised” to some Asian traders, as there is no demand for August shipment from end-users in most outlets. “Traders see the Middle East as a good destination for the next couple of months. Every big trader [in China] sold a lot there, so taking a position for this market for the future can work,” an Asian trader commented.
In Southeast Asia’s import billet market, there have been no new sales above $500/mt CFR and offers are still at $505/mt CFR and above.
