The leading Indonesian mill has voiced its offers for billets at $437/mt FOB for March shipment, while the previous sales for at least 30,000 mt of Ferbruary shipment allocation were reported at $433/mt FOB late last week. In the slab segment, an ex-Indonesia offer is at $436/mt FOB for February shipment. Though the latest offers are slightly higher than the previous sales, most market sources do not see this as a sign that the Asian market will rebound.
“They cut prices to sell February shipment, and still $437/mt FOB is not a bad price,” a Singapore-based source said, adding that trading will resume only next week.
The ex-China reference price has remained stable at $440-450/mt FOB, but market sources agree that from next week some sellers will be able to give $435/mt FOB if they will want to push volumes. “The weak reality controlled the [Chinese] market and low winter demand plus stable supply put more pressure on steel pricing... The market is starting to worry that January will bring more inventories and mills are adjusting local prices to cater to changes,” a Chinese trader noted.
