The sentiment in the Asian billet export market has worsened this week, following declines in futures and spot prices in China since Monday this week due to the intensified protectionism against Chinese products reported recently. However, ASEAN mills are not in a rush to cut billet export prices, at least so far.
The ex-China reference price for 3SP billet has settled at $435-445/mt FOB today, February 25, down by $7.5/mt from yesterday and down $10/mt since last Friday. Most offers are at $440-445/mt FOB at the moment, a number of Chinese traders confirm, with some additional small discounts possible. “The previous deals in Asia [for Indonesia origin billets] were at $435-440/mt FOB. Now this is China’s price,” a trader said.
Just over the past few working days, two major importers of Chinese steel have announced AD duties. South Korea has imposed provisional AD duties on thick steel plates from China at 27.91-38.02 percent and Vietnam has announced preliminary antidumping duty on hot rolled steel products from China at 19.38-27.83 percent effective as of March 7. Though Chinese suppliers will try to keep selling some other grades and specifications of products to these markets, these recent developments have impacted sentiments a lot. Also, a legislation was introduced on Monday in the US aimed at fighting “the impact of Chinese-supported companies moving portions of their production to other countries to circumvent American duties.”
Ex-Indonesia billet offers have been stable since Friday at $450/mt FOB, increasing from the previous level at $445/mt FOB. “This price in ridiculous in the current conditions. The market is not even at $440/mt FOB,” a Singapore-based trader said.
Offers for Malaysian billets are near $455/mt FOB, targeting mainly the Turkish market.
