The not-as-positive-as-expected developments in the Chinese market and the resistance of buyers have been putting pressure on the mood in the Asian billet market. Chinese suppliers have mainly been keeping prices stable, though some low-priced offers for position cargoes have been available as well. ASEAN-based mills have also tried to keep prices stable, while one deal at a slightly lower level is heard to have been done to a trader.
Ex-China billet offers are still at $600-620/mt FOB, stable from late last week and just slightly above the level a week ago at $600-610/mt FOB. “I believe the current real price you can get from mills is $610-615/mt FOB and prices will keep increasing,” a Chinese trader commented. However, some rare offers from Chinese traders have been reported at $590-600/mt FOB or even below, though most sources believe that these are for earlier taken positions.
A deal for 10,000 mt of ex-China 5SP billet was done to the Philippines at $620/mt CFR last week, but “the material is with Mn. 0.55 minimum, so is not so much preferred by buyers,” an Asian trader said. As SteelOrbis reported last week, ex-ASEAN 5SP IF billet was traded to the Philippines at $620-623/mt CFR. The tradable level for imported 5SP billet (not including IF) is still assessed at $625-630/mt CFR, stable from last week. “This is the maximum price acceptable now,” a source said.
Official offers from an Indonesian mill are still at $630/mt FOB for 5SP 130 mm and $620/mt FOB for 150 mm billet, which is less popular in the Philippines. However, there has been a rumor in the market about a contract for this producer at $615-620/mt FOB to a trader for a position. “I heard it was 130 mm, prepared for the Philippines market,” another trader commented. The average freight from Indonesia to the Philippines is around $20/mt.
In addition, one Asian trader has taken a position for slightly less than 30,000 mt of ex-Russia billet at $570/mt FOB Russia’s Far East region, which would translate up to $595-600/mt CFR Southeast Asia. Some market sources believe that the material is for the Thai market. This price is lower than the latest ex-Iran offers at $600-610/mt CFR Thailand.
The average Chinese billet price has reached RMB 4,053/mt ex-warehouse, up by RMB 70/mt ($10/mt) over the past week and up RMB 33/mt ($5/mt) from the previous day. This price translates to $519/mt, excluding 13 percent VAT. So, taking into account the currency fluctuations, the SteelOrbis reference price for imported billet in China has remained at the level seen late last week level at $515/mt CFR on average.
$1 = RMB 6.9156
