Prices for ex-China billet have increased since last week, but they have remained among the most competitive in the Southeast Asian market. Moreover, there have been offers for distant markets like Turkey, though there have been no reports about fresh deals at new prices so far.
The SteelOrbis reference price for ex-China billet has moved up to $600-610/mt FOB early this week, up by $5-10/mt from last week. There have been reports that Chinese traders took position from mills at $600/mt FOB for more than 50,000 mt a week ago or so, while new offers from mills are rare and negotiations would start at $610/mt FOB at least, according to sources. The previous deals for ex-China billet were at $570-590/mt FOB during this month.
As a result, traders have been offering ex-China billet at $625-630/mt CFR to the Philippines with the lowest possible level said to be $620/mt CFR, according to local market sources. Last week, the tradable price in the Philippines was at $610-620/mt CFR and, though there have been no reports of deals at higher levels, the buyers will not have any other option but to accept some increase, sources believe.
Ex-ASEAN billet offers have been reported at $630-640/mt FOB for 130 mm billet from a few mills, stable compared to late last week, but slightly higher than $630/mt FOB reported early last week. “No one seems want to take billet positions now. The same cannot be said of slabs,” a trader said. According to some sources, offers for ex-Indonesia 150 mm billet can be found at $620/mt FOB as this material is less popular in Southeast Asia.
The average local billet price in China has been at RMB 3,983/mt ex-warehouse, down by RMB 10/mt ($1.4/mt) from the previous day and down RMB 17/mt ($2.4/mt) over the psat week. This price translates to $507/mt, excluding 13 percent VAT. As a result of the devaluation of the RMB and some easing of local prices, the SteelOrbis reference price for imported billet in China has settled at $505-510/mt CFR, versus $515/mt CFR last week.
$1 = RMB 6.9519
