Indonesian newcomer Dexin Steel, which has started to produce billet recently, has been actively offering in the export market and has even managed to sell some volumes, while in the local market there have been some cancelations due to the falling local currency rate.
The producer’s offers to the export market have been mainly at $395/mt FOB. A deal for 20,000 mt has been done to China at this level (corresponds to $405-410/mt CFR), while another contract has been heard to the Philippines at $410-415/mt CFR Manila, which, however, has not been confirmed. Weak demand in Southeast Asia due to the lockdown of Manila and travel restrictions in the region have weighed on the prices. Moreover, competition is high. One Russian steelmaker has offered at $412/mt CFR to the Philippines and at $410/mt CFR to Indonesia, sources have told SteelOrbis.
The export market has been more attractive for Dexin Steel due to the depreciation of the local currency. The Indonesian rupiah has weakened against the US dollar by 7.5 percent over the past month to $1 = IDR 14,728 on March 13. “Dexin cancelled the contract when the rupiah weakened,” an Indonesia-based source said. The deal had been done at IDR 6,500/kg including 10 percent VAT, which is equivalent to $404.5/mt CFR Jakarta at the moment.
