Fewer fluctuations have been seen in Asian billet export prices compared to before. This degree of price stabilization has resulted in improved confidence among buyers, especially in the regional market. However, negative sentiments have not disappeared.
ASEAN billet export price levels are still at $475-500/mt FOB, similar to late last week, but the tradable levels are assessed as being closer to the lower end of the range, at $475-485/mt FOB, according to market sources. “Even this is high for the current market, but they [most mills, led by Indonesian producers] don’t need to sell,” a trader said. Only one deal for a small volume was reported at $475/mt FOB for late January shipment late last week, translating to around $490-492/mt CFR Indonesia.
The SteelOrbis reference price for ex-China billet stands at $460-470/mt FOB, a small increase compared to $460-465/mt FOB late last week. Chinese billet prices are still more competitive compared to ASEAN prices, but, overall, firm offers are still limited.
A deal for a small volume of 3SP billet is reported to have been done by a trader to Thailand at $485-490/mt CFR for Chinese origin. Another deal has also been reported by a trader in a short position at $485/mt CFR Manila. Both deals were done for small volumes. “The market remains quiet and the volatility of futures is not helping,” a trader said. The CFR prices translate to $462-467/mt on FOB basis, excluding freight.
There has also been a rumor that a deal for Chinese billet was done at $475/mt CFR to Turkey, but this has been denied by most major selling and buying sources, with the price called “speculative and not reasonable.” One trader said that there are no prices even from China at below $460/mt FOB at the moment, so the lowest possible for Turkey should be $500-505/mt CFR. “There is no sense in selling to Turkey at $10-15/mt below Southeast Asia,” one of the top five steel traders in China said.