Despite expectations of some stabilization in ex-China billet prices, import quotations in Taiwan have continued to slide this week as Chinese traders have remained aggressive. Other suppliers, if they need to push volumes abroad, have had to follow.
The latest deal for vanadium-added billet from a Chinese trader has been heard at $470/mt CFR, down by $10/mt from the previous deal for the same specification reported last week. “Big mills like Shagang, Baosteel, Benxi, etc, said they have completed their 2024 annual export targets and are resisting dropping prices to collect orders. However, traders are still aggressively shorting,” a Singapore-based source told SteelOrbis. Official offers from China from mills have been mainly at $450-455/mt FOB, with the possibility of only slight discounts, and so the reference price of SteelOrbis has been stable at late last week’s levels of $445-455/mt FOB. But traders, who are offering in short positions, believe that the weak winter demand in China will keep putting pressure on Chinese FOB-based prices and that the levels of $440/mt FOB and lower are possible in the coming weeks. One of the Chinese traders has confirmed that their price is $445/mt FOB and that "negotiations are ongoing".
In addition, the main billet exporters in Russia’s Far East region have had to cut prices to accelerate sales as Taiwan has lately been the main trade destination for Russia in the Far East. In particular, some sales of base grade 3SP billets have been done at $450/mt CFR Taiwan, also moving down by $10/mt over the past week.