Rumors about sizable sales of up to 150,000 mt of Indonesian billet have been circulating in the market this week. Deals for these tonnages are heard to have been done over the previous two weeks, but with no deals done this week, according to market sources. The price was $435/mt FOB and slightly lower in these contracts. But by the end of the week, there has been no confirmation of these deals, at least from major importers in the Middle East and Southeast Asia.
The price discussed in these deals translates to around $470/mt CFR Turkey and up to $475/mt CFR Saudi Arabia, considering freight, but this week bids from these countries were $5/mt lower.
“I think the billet sales could be due to the sudden need for export licenses from January 1, 2026, and some Chinese traders took positions for Indonesian billet instead of Chinese billets,” a Singapore-based trader said.
Some traders, not involved in this trading activity, said that last week it was possible to buy at $435-437/mt FOB from Indonesia, but still it is risky to take big positions, not because of the price since China’s offers are almost the same, but due to uncertainty as the material will arrive only in April.
New offers of Indonesian billet for April shipment are at $442/mt FOB today, up by $2/mt from the middle of the week and up $5/mt from the level late last week.
“I think that, compared to slabs, Dexin has fewer problems in billet sales,” an international trader said, considering CBAM in Europe and the more complicated environment in the slab segment.