Sentiments in the Asian billet export market have been more stable after the previous rises. Following deals signed in Asia and even to the GCC, Asian billet suppliers may face stronger resistance from buyers, while the freight market is more predictable now with more vessels resuming business in the Middle East region.
The Indonesian mill has managed to sell 50,000 mt of billets for May shipment to Oman at $485/mt FOB early this week. After that, the producer switched to June shipment offers, though its price has remained stable at $485/mt FOB as of March 25. SteelOrbis has confirmed that the CFR price in the deal was around $525/mt.
“There seem to be more vessels passing through the Strait of Hormuz. Ship owners are more confident in quoting freight now,” an Asian trader said. The improved situation in the freight market may calm down the billet market, sources believe.
In Southeast Asia, offers for Chinese billets are stable compared to early this week, at $495-500/mt CFR, but market sources believe that $490/mt CFR is the highest tradable level, in line with sales to the Philippines and Taiwan. The Russian Far East mill returned to the market with June shipment billet offers at $490/mt CFR Taiwan and managed to sell 20,000 mt at this level. But the supplier then left the market again.
