ASEAN mills rise semis offers again before year end, seeing stronger sentiment in China

Tuesday, 26 December 2023 15:39:51 (GMT+3)   |   Shanghai
       

ASEAN mills have decided to finish the year on a positive note, increasing its billet and slabs offers. The major reason behind this decision has been stronger sentiments in China and high raw material prices, while deals have been limited or absent at all.

Ex-Indonesia 3SP billet offers have added $5-10/mt over the week, reaching $530-535/mt FOB again. The latest single deal has been reported at $525/mt FOB with a few market sources believing that it is for the Latin America market. “No one else will accept this, so that $535/mt FOB offer is just indication now, not the real market level,” a Singapore-based trader said. A few other sources said that in the majority of sales destinations, including Asia and Turkey, the tradable level is not above $510-515/mt FOB so far. “Dexin offer is now near $530/mt FOB as there are no incentives for them to lower prices today given Chinese futures,” another trader said. Offers for Malaysian billet have remained limited.

The billet reference price for SE Asia has remained at $530-538/mt CFR, stable after an increase last week, but no deals have been reported with demand assessed as “dead”. Last deals were done at $530/mt CFR for 5SP. Offers for ex-Russia commercial billet in Taiwan have remained at $530/mt CFR, after an increase of $5-10/mt reported last week.

At the same time, ex-Indonesia official slab offers have been reported at $620/mt FOB, up sharply from the previous level of $580/mt FOB. “This is true, prices are that high, they hope to get it after Europe comes back from holidays,” a trader said. Ex-Malaysia slab offers have been assessed at not below $600/mt FOB.

Ex-China billet price has gained $10/mt on average since late last week to $520-550/mt FOB with the midpoint $535/mt FOB. The average Chinese billet price in the local market has been at RMB 3,730/mt ex-warehouse on December 26, up by RMB 42/mt ($6/mt) over the week.

Today rebar futures at Shanghai Futures Exchange have added 0.65 percent. Steel prices in China have been pushed up by high raw material prices with iron ore exceeding $140/mt CFR.

$1 = RMB 7.0965


Similar articles

Kazakhstan bans semi-finished exports for six months

19 Nov | Steel News

Large Iranian steel producer floats fresh billet and slab tenders

02 Oct | Longs and Billet

China’s Panhua Group to commence first phase of steel plant in Philippines in Q1 2025

26 Aug | Steel News

Global View on Billet: Market uncertain amid shaky rebound in China

23 Aug | Longs and Billet

Cost factor causes Turkish mills to choose heavy billet and slab imports over captive production

26 Jul | Longs and Billet

Ex-ASEAN semis prices soften after sharp drop in Chinese futures after holiday

11 Jun | Longs and Billet

Iran’s steel exports up 6.6 percent in last Iranian year

08 Apr | Steel News

Iran’s steel exports up 7.6 percent in first 11 months of Iranian year

20 Mar | Steel News

ASEAN mills keep billet export offers stable amid latest sales including slabs, China still bearish

12 Mar | Longs and Billet

Rumors of semis export ban or duty emerge in China after recent rise in activity

27 Feb | Steel News