Prices for ex-ASEAN billet have remained at a low level and more deals have been reported since last week. The mood in the market, which was cautiously positive last week, has turned negative again today, March 26, due to the drop in futures prices in China, signaling that demand in the country has not improved sufficiently.
Offers for ex-Indonesia billet have been reported at $495/mt FOB today, down from $500/mt FOB last week. Deals for a total of 100,000 mt have been done at $490-495/mt FOB. This is in addition to the previous sale reported at a similar level. “The mood is not good. Today, Dexin said $495/mt FOB is still workable,” a trader said, adding that buyers will push for below $485/mt FOB now. Though the sales destinations for recent deals have remained unknown, market sources believe that most of the volumes were taken by traders for long positions.
The ex-China 3SP billet reference price has settled at $485-495/mt FOB today, down by $5/mt from the previous day, while the average local spot billet price has lost RMB 30/mt ($4/mt), according to SteelOrbis’ information. Negotiations at $485-490/mt FOB have been reported lately, though there has been no confirmation of a deal having been done. “Sentiment is falling again and it seems that demand for rebar in 2024 in China is soft. It has pulled all buying down in most regions. Steel futures have been adjusted down by another two percent, losing the rebound trend since last week, and previous inventory declines together with slow output do not help much in the low demand conditions,” a Chinese trader said.
In the import billet market in Asia, buyers have also been insisting on lower prices. A deal for ex-Far East Russia billet has been signed at $500-505/mt CFR Taiwan, after the supplier dropped its previous offers at $515/mt CFR. A new offer from the same supplier has been reported at $508/mt CFR Taiwan. “Indonesian and Thai customers are also looking for $500/mt CFR, but not many suppliers agree on this,” a Singapore-based trader said. The tradable level for imported billet in the Philippines is still at around $510-515/mt CFR, with the market awaiting new deals.