Prices for ex-Indonesia billet and slabs have been lowered by $5/mt today, July 23, to $450/mt FOB for October shipment, but the level is still $10/mt above last Friday. This slight decline has been expected in the market, as the sharp gains early this week have been partly due to the speculative increase in Chinese futures. “No matter, Dexin offers at $450/mt FOB or $455/mt FOB, frankly speaking. Buyers are ignoring these high prices,” an Asian trader said.
The Chinese billet reference price is stable today at $450-460/mt FOB with the number of offers remaining very limited. Some traders, who do not believe in the sustainability of the trend, may discuss prices equivalent to $445-450/mt FOB, but this level is out of the range of interest of buyers. For instance, Asian buyers still believe that the tradable level should be $440-450/mt, but on CFR basis.
Today, Chinese rebar and HRC futures have posted just a gradual increase - 0.31 percent and 0.2 percent respectively, which signals a market stabilization.