This week has started with upward movements in China, where futures prices have moved up amid positive expectations for demand and some production cuts. Accordingly, offers for Chinese billets in the export market have increased and only some buyers managed to purchase at the previous lower prices before the hike started. ASEAN mills have kept their offers stable at high levels, which are now close to Chinese prices.
The reference price for ex-China 3SP billet has settled at $435-450/mt FOB, increasing by $12.5/mt on average since late last week. Most offers today are at $445-450/mt FOB, sources have said, while the previous deals were heard at around $435/mt FOB. Futures in China have been on the rise for two days in a row, supported by better demand expectations and production cuts.
Official offers for ex-Indonesia billet are stable at $455/mt FOB for June shipment, but the mill can provide $5/mt discount for local customers, sources have said. This makes the Indonesian price almost in line with Chinese prices at the moment.
One of the Vietnamese mills has issued an offer for billet at $450/mt FOB for late April-early May shipment. The price may be workable for some buyers, considering the closer shipping time. Another mill from Vietnam is asking for $5-10/mt higher, being focused on exports of other products.
The Malaysian billet price is indicatively at $460-465/mt FOB, but no firm offers have been heard this week.