Prices for both ex-China and ex-ASEAN billets have been under pressure and trading has been limited ahead of the year-end with negative moods prevailing in China again. Bearishness has been reflected in lower offers from traders in the Asian region too.
Ex-China billet reference price has declined by $7.5/mt on average over the day and since last week to $445-450/mt FOB from $450-460/mt FOB. But “The market is very quiet and there are few purchasing orders even at this price,” a source said. The decline in the export billet market in China has resumed as falling futures today, on December 18, have reflected weak local demand with no further supportive measures from authorities. Moreover, more rapid decline in the raw material, iron ore in particular, has resulted in lower costs and bigger flexibility of Chinese steel exporters.
Official offer by the Indonesian mill has been heard at $455/mt FOB, stable from late last week, but today a few sources have already said that the producer is willing to sell February shipment billet at $450/mt FOB with no new deals reported so far. “We can forget about earlier targets at $460-465/mt FOB,” a trader commented.
In such conditions, import billet prices in SE Asia have also slid. Offers for 5SP from traders for the Philippines have been at $465-470/mt CFR, losing $10/mt from late last week. “But people are not even buying at $465/mt CFR. Year-end holidays are approaching, so activity is limited,” an Asian trader said. Latest offers for 3SP billet in Indonesia and Thailand have been heard at $460-465/mt CFR, also decreasing by $10/mt over the week.