The mood in the Asian billet market has improved early this week after China announced a “moderately loose” monetary policy for 2025. However, for now only Chinese offers have increased by $5/mt, while ASEAN mills are holding prices stable, at the same level as Chinese offers or even slightly lower.
The ex-China reference price has moved up to $450-460/mt FOB as most offers have been heard at the higher end of the range, at $455-460/mt FOB, from $450/mt FOB last week. Market sources still see the tradable levels as hardly being above $450/mt FOB, but the two percent rise in futures prices today has changed short-term sentiments. At a top economic meeting on Sunday, China announced a focus on a “moderately loose” monetary policy in 2025, with analysts viewing this as a strong change in rhetoric. No firm measures have been announced, but they are expected in January, especially aimed at reducing housing inventories.
The official offer for February shipment from the leading Indonesian mill has remained at $455/mt FOB after the producer cut offers twice last week, by $5/mt each time. “I would say that Dexin’s price is in line with China now, so I expect buying [of Indonesian billets] will increase,” an Asian trader said. Official offers from Malaysia are still at $465-470/mt FOB as sellers are targeting Turkey, where Malaysian billets are duty-free.
In Southeast Asia’s import billet market, buyers have also witnessed higher offers from Chinese traders. In the Philippines, offers for 5SP have reached $475-480/mt CFR, from $468-477/mt CFR last week. For 3SP billet, the minimum price is $5/mt higher this week, at $470/mt CFR Indonesia.
