A Malaysian steel mill is reported to have sold a cargo of billets to a trader at below $500/mt FOB last week as demand was quite low in the month of July. But since the sentiment in China has already improved and as pressure from unsold volumes has diminished somewhat, offers from some mills have already increased.
A 20,000 mt cargo, consisting of 3SP and 5SP billet, was traded to a trader at $485-490/mt FOB last week. This price translates to around $525/mt CFR Manila, though last week the majority of sources observed ex-mill prices at $530/mt CFR at the lowest.
“The week has just started. Let’s see, but sellers' intentions are higher,” a source from Manila said. Another source from Singapore confirmed that a deal was done at such a lower level and that since Friday offers have been increased to $520/mt FOB, which corresponds to around $555/mt CFR Manila.
Offers from a major Indonesian mill to the local market have increased from $525-530/mt CFR to $540/mt CFR Jakarta. The lowest offer from the mill to the Philippines has been heard at $545/mt CFR.
Also, IF billet offers from Thailand have added $10/mt to $520/mt CFR Manila.
“Let’s see how the market in China will move,” a trader said, adding that support from China for Southeast Asian prices has already been seen.