Following sales of sizable billet tonnages to China two weeks ago, Southeast Asian suppliers have managed to continue sales amid still sustainable demand and the price gap with local quotations.
A deal for 20,000 mt of ex-Vietnam billet has been signed at $410/mt FOB ($425/mt CFR) to China this week, according to Asian traders. The previous transaction for Vietnamese billet from the same producer was at $405/mt FOB, also to China. “This CFR price is reasonable for January shipment,” a Singapore-based trader said.
The previous booking of Vietnamese billet was done at $420-425/mt CFR to the Philippines last week.
In total, about 250,000-300,000 mt of billet ex-Southeast Asia, ex-India and ex-Iran have been sold to China over the last three weeks, according to SteelOrbis’ information. Prices for all these tonnages have been ranging from $410/mt CFR (for Iranian billet) to the recent $425/mt CFR.
Though sentiment in the local Chinese market has started to weaken over the last few days as domestic rebar sales became less active, the gap between import and local billet prices, especially in the east of the country, is up to $30/mt and not less than $20/mt.