There has been no definite trend in the Asian billet market this week, with most offers remaining stable and not many changes seen in the market fundamentals. However, Chinese traders have been ready to give small discounts, trying to accelerate sales, while the Indonesian mill has again decided to test the market with a gradual price increase.
The ex-China billet reference price has been stable since last week at $460-465/mt FOB. Most offers are stable at the abovementioned levels, but end-users have been asking for levels below $455/mt FOB, according to an Asian trader. “The steel market is stuck in the old logic. So, most prices are kept stable or have added RMB 10/mt in the local market and the debar trade is better at over 120,000 mt daily,” a trader noted. As steel production in China is stronger and demand has posted a small improvement, the market balance has remained the same.
In Southeast Asia, offers for Chinese 5SP billet to the Philippines have been at $485-488/mt CFR, while the lowest level for 3SP billet has been heard at $483/mt CFR in Thailand. At the same time, small-volume bookings have been discussed for 3SP at $480/mt CFR. This means prices have lost $2-5/mt over the past week.
While demand for base 3SP billet was limited, there has been a talk about 130 mm vanadium-added billet sold to Taiwan at $510/mt CFR over the past week. The extra for vanadium is $15/mt and the extra for the size is $5-10/mt.
The major Indonesian producer has increased its billet and wire rod offers by $5/mt to $490/mt FOB and $525/mt FOB, respectively. The mill is still offering for June shipment, “but I believe they want to trade June with some extra to the GCC. Not sure about $490/mt FOB, but $480/mt FOB can work out if the transportation route is agreed,” an Asian trader said. Ex-Indonesia slab offers have been stable after the previous sharp increase - at $540/mt FOB, for July shipment.
