Prices for ex-China billet have been stable in newly disclosed deals. Up to 80,000 mt of billet from China were sold at $471-473/mt FOB mainly late last week, but also with at least one deal done early this week. Most of the volumes are expected to go to end-users in neighboring Southeast Asian countries.
For instance, in addition to a deal to Indonesia for 20,000 mt of 3SP billet at $492/mt CFR, around 15,000 mt of the same grade changed hands at $497/mt CFR. Also, 5SP billet from China was traded at $503/mt CFR, with the tonnage totaling 20,000 mt. “I think prices are on a rebounding trend since yesterday, so I am surprised that someone could say $470/mt FOB is easy to get,” an international trader said.
The current reference price for ex-China billet is at $470-480/mt FOB with most offers at $475/mt FOB or above, since iron ore is moving slowly above $110/mt CFR. The average local billet prices in China stand at RMB 3.315/mt ex-warehouse or $466/mt today, rising very slightly by RMB 5/mt over the past week.
