After the slow trading activity in the Asian billet market last week due to the holidays, ASEAN mills have been active in negotiations and have managed to achieve higher prices in their latest deals. The stronger Chinese market over the past 10 days has supported these rises.
Ex-ASEAN 3SP billet offer prices have reached $500/mt FOB early this week, up from the previous asking price of $490/mt FOB, which was not accepted by buyers last week. But on Monday, market sources reported deals for up to 30,000-50,000 mt of 3SP billet done at $490/mt FOB from Indonesia. In addition, ex-Malaysia semis are reported to have been sold at $495/mt FOB, versus $500/mt FOB targeted in last week’s offers, while the cargo amounts to 50,000 mt. “I believe it is for Turkey or Egypt. There is no way Southeast Asia or Taiwan is able to pay that price now,” an Asian trader said. Moreover, another deal for a bigger volume up to 50,000 mt has also been reported, at $500/mt FOB, but for a different grade, 4SP, according to some sources. This means that the price includes a $4-5/mt extra. This volume is also going to be sold in the MENA region, Egypt specifically. So, some sources believe that the extra is even higher than $10/mt due to the high manganese content sought in billet by Egyptian buyers.
Asian billet has been the most competitive in Turkey and North Africa lately, following the recent gradual increase. In particular, offers for Asian billet, both ex-China and ex-ASEAN have been at $525-535/mt CFR, up by $10/mt on the lower end over the past week.
The ex-China 3SP reference billet price has settled at $490-505/mt FOB for now, up from $480-485/mt FOB two weeks back, but though the increase week on week has been limited. “China’s price is nominal again, as buyers will choose Dexin instead of China if the price is the same,” a trader said.
Moreover, ex-ASEAN 130 mm billets, the most popular in the Philippines, have been offered at $510/mt FOB, which translates to a minimum of $530/mt CFR Manila. Of course, some traders are still offering at lower levels. However, last week’s tradable levels of $500-510/mt CFR are hardly achievable now.
Also, ex-Russia billet shipped from Far East ports has still been on offer to Taiwan at $500/mt CFR. Buyers are still looking for $490/mt CFR, achieved in the large-volume bookings of Chinese billet early this month.