According to market sources, the main Indonesian mill Dexin has started to sell billets for November shipment to traders with prices relatively stable compared to the previous round of sales for October, but lower than previous offers, SteelOrbis has learned from the market.
At least 30,000 mt of ex-Indonesia billet for November shipment have been sold to a trader at $515/mt FOB this week. Initial offers were at $525/mt FOB, but the seller had to cut them, seeing insufficient demand. The previous trades were done by Dexin at $510-520/mt FOB for October.
For now, it is still unclear to which market the trader will sell. With the current freight rates, this FOB level translates to $540/mt CFR Manila. As SteelOrbis reported earlier this week, the reference price for imported billet in the Philippines has declined to $530-540/mt CFR this week.
Sources said that it is still possible that the material will go to distant markets like Turkey or Europe. An offer for November shipment from Indonesia has already been voiced at $565/mt CFR Turkey or slightly higher.
