Offer prices for billet from the main Indonesian mill have increased again early this week amid continued sales to traders and the reported closure of order books for July and even partly for August. Nevertheless, Southeast Asian import billet customers have been resisting the recent rises, seeing the range-bound prices in China.
Ex-Indonesia offers for 5SP billet have increased by $5/mt from the previous level to $525/mt FOB for August shipment. This happened after the mill managed to sell a few lots at $520/mt FOB, its previous target level, to traders. “Dexin is definitely sold out for July. In fact, they are saying that they are almost sold out for their billet allocation in August,” a Singapore-based trader said. Another source confirmed that only August shipment lots have been offered recently but added that some speculation may exist. The tonnage at higher levels is expected to go to distant market like Latin America or East/West Africa, according to sources.
There has been a lack of ex-Malaysia billet offers lately and the estimated level has been heard at $530/mt FOB. Most major mills have been focusing on rebar or wire rod sales. Last week, a deal for ex-Malaysia rebar was concluded at $560/mt CFR Singapore on theoretical weight basis. In addition, the latest offers for ex-Malaysia wire rod have been heard at $550/mt FOB.
Offers in Southeast Asia’s import billet market have inched up as well by up to $5/mt, being reported at $530/mt CFR Manila for 3SP and $535-540/mt CFR Manila for 5SP. “But counterbids are lower at $515-520/mt CFR,” a local source said. “The market is very quiet now. Offers are at about $535-540/mt CFR, but buyers’ ideas do not exist,” an international trader said. The highest tradable level for 5SP billet has been reported at $520/mt CFR in Indonesia, while only Iranian origin billet can be offered by traders at close to this level.
The average local billet price in China has fluctuated in a limited range in China lately, settling at RMB 3,588/mt ex-warehouse on June 20, up by RMB 15/mt ($2/mt) over the past week and down by RMB 7/mt ($1/mt) from the previous day. On the one hand, demand has been slack due to the worse weather conditions, while, on the other hand, some support for sentiment has come from the recent monetary policy measures. Ex-China billet offers have remained stable from last week at $510-530/mt FOB.