Prices for Chinese billets have remained among the most competitive in the global market, even though they are relatively stable compared to late last week, though some discounts have been provided to sign deals in the regional market. Overall sentiments in the billet segment are still weak, even though some ASEAN mills have decided to slightly increase official offers after previously signed deals.
The SteelOrbis reference price for ex-China billet stands at $410-430/mt FOB, with the midpoint at $420/mt FOB, stable from Friday. Most offers have been at $420/mt FOB and above, but negotiations have still been held at a lower level - at $415/mt FOB or below for 3SP.
According to market sources, up to 80,000 mt of Chinese 5SP billets have been traded to Indonesia at $438/mt CFR, which translates to around $433/mt CFR for 3SP billet. The previous deal for Chinese 5SP billet to Southeast Asia was done to the Philippines at $440/mt CFR a week ago, but, considering the freight difference, the price in the new contract is assessed as rather stable. “Offers for 3SP [Chinese billet] are stable at $435/mt CFR, and this is the best for Asian buyers now,” a Singapore-based trader said.
A contract for 50,000 mt of Indonesian billet was signed at $425/mt FOB for September shipment last week, with the buyers rumored to be from the UAE. New offers for both billets and slabs from the Indonesian mill have been reported at $430/mt FOB on June 10. “Their lead time is getting stretched, so they are not lowering prices by much,” an Asian trader said.