Prices for ex-Asia billet have improved on April 10 amid rises in steel futures prices and the improved mood in the market in general after the unexpected move by the US president to postpone the enforcement of country-specific reciprocal tariffs. Even though China is excluded from this and its duties in total exceed 100 percent, most market participants in China have been focusing on local demand, which has been better, and so China has had less impact on other Asian countries.
The ex-China billet reference price has settled at $420-430/mt FOB, up by $2.5/mt from April 9. “The market is responding strongly to Trump’s attitude with the easing of the trade war leading to a strong rebound in price, and Chinese steel is not under strong pressure so far amid low inventory and balanced demand,” a Chinese trader noted. Most offers are at $425-430/mt FOB today, versus negotiations held at $420/mt FOB a day earlier.
Yesterday, April 9, US president Donald Trump announced that he will pause the enforcement of country-specific reciprocal tariffs for 90 days, setting basic tariffs at a minimum level of 10 percent. At the same time, Trump raised the “stacked” tariffs on China to a combined 125 percent. A few traders said that, though the impact of all the latest measures is unclear so far, “this 90-day postponement is good for the global market. There is no impact on Chinese steel anyway. We need less turbulence,” another Chinese source said.
Ex-Indonesia billet offer has increased by $7/mt from the previous day to $435/mt FOB for June shipment, while slab offers have been at $450/mt FOB.
The SteelOrbis reference price for import billet in Southeast Asia has settled at $440-450/mt CFR, down by $5-10/mt over the past week. At least two deals have been discussed at $445/mt CFR for 150 mm 5SP billet and at $450/mt CFR for 130 mm 5SP billet to the Philippines. Though there has been no confirmation that the deals have been finalized, market sources agree that this is the current workable level and some sales will happen before prices rebound again. Today, April 10, some offers have already been voiced at $5/mt higher. Chinese 3SP billet was at $440/mt CFR in Indonesia yesterday and $445/mt CFR today, while some sources from Thailand have reported even $450/mt CFR today. “Russian and Iranian billets lost competitiveness to China this week,” a Singapore-based source said, adding that indicative levels for the abovementioned origins have not been below $445-450/mt CFR.