Posted on 20 Mar 2024
The rebound in China’s steel futures this week has provided some support for semis prices in Southeast Asia. Mills are no longer expected to be aggressive in reducing prices further. However, demand in home markets remains weak.
A leading Indonesian mill sold 40,000 tonnes of 3sp grade 150mm billet at $490/t fob on 18 March. A trading house booked half of the April/May shipment cargo for Latin America, Africa and the EU, a market source heard. At least two other traders took the remaining cargo.
The Indonesian mill will not consider that price anymore today, says a trader who spoke to an insider. The price applies only to Monday when the mill needed the order but the China futures have risen a lot since, another trader says on Tuesday.
The mill’s offer price was $500/t fob before the deal. “They are still trying to maintain it at $500/t fob for local customers,” a Jakarta trader says on Tuesday. The mill’s offer price for either plate-making or rerolling slab remains at $505/t fob, but bids are at $500/t fob. “The domestic market is still really weak,” he says. Slab import prices have fallen considerably in the past two weeks. Offers from the mill then were around $520/t fob.
Some traders are taking a wait-and-see stance amid this week’s rebound in Chinese steel futures. They are unsure if the price hikes indicated are sustainable. A second Jakarta trader says that the market was “confusing” and he did not know what his offer price should be. “Maybe the price will go down again so I am just speaking informally with customers who really want to book cargoes,” the trader says.
Source:Kallanish
