Weakening of the Chinese billet market ahead of holidays has impacted ex-ASEAN prices. As a result, the major mill has voiced small decline in offers and some more visible cut in deal prices in the last week before the market will be closed for the Lunar New Year.
New offers for ex-Indonesia 3SP billet have been lowered by $5-10/mt to $525-530/mt FOB, according to a number of sources. One sale for up to 20,000 mt has been reported from the mill in the domestic market at $525/mt FOB for March shipment. This has been also confirmed by Indonesian re-rollers, which said that the CFR price in this transaction was $540-545/mt. “Iranian billet prices are very unstable, and though buyers had to accept such Dexin's price,” one of re-roller said.
Also, another ex-Indonesia deal has been signed at $521/mt FOB for West Africa. The CFR price is assessed at above $555/mt CFR. Market sources said that this was the bid level to a number of sellers from this part of the world, but only a few sellers have been able to provide it. Except Indonesian deal, the major Iranian producer has managed to sell 30,000 mt of billets at $510/mt FOB to the East African market, according to market sources. “Bids for Iranian billets in SE Asia are still $520-525/mt CFR [translating to $490/mt FOB as the highest] and not higher, so they [mills from Iran] are looking for other destinations,” a Singapore-based trader said.
The Malaysian EAF mill has been also in the market, but without the firm offer, assessing the market at $530/mt FOB. “They were asking for prices for March readiness. But I think it's a soft enquiry now, just sort of a price check,” an international trader said.
The deal price level for ex-ASEAN billet has settled at $521-525/mt FOB now, down by $5-9/mt from 60,000 mt sales reported last week at $530/mt FOB. Markets sources agree that Dexin Steel has been trying to close the March shipment order books before the holidays, so it has provided some discounts. However, some small part of it has remained unsold, according to some sources, regularly buying from the mill.
Ex-China reference price has lost another $5/mt from late last week – to $520-530/mt FOB. The average local billet price has softened by RMB 52/mt ($7/mt) over the week to RMB 3,628/mt ($510/mt) ex-warehouse. Market sources have already started to leave the market for holidays, restocking is finished and the mood for demand for post-holiday period is mixed.
In the Southeast Asian import billet market, the reference price has remained at $530-540/mt CFR so far with the latest Dexin deal in the local market and low bids from the Philippines at $530-535/mt CFR at best. Offers for ex-Far East Russia billet to Taiwan have remained at $530-535/mt CFR in Taiwan with the tradable level assessed as still not above $525/mt CFR.
$1 = RMB 7.1082