Posted on 19 Jun 2024
Chinese billet export prices appear to have sprung back up this week, Kallanish notes. Several deals for Chinese billet previously closed at below market levels during last week, possibly with some Chinese traders taking short positions or certain Chinese mills letting go of material amid an anticipated weak third quarter.
Offers from Chinese mills in Tangshan for 3sp 150mm square billet are prevailing at $490/tonne fob, trading sources say. Bookings for Chinese billet destined for Türkiye last week were heard to have reached around 50,000 tonnes from a southern Chinese mill at around $485/t fob.
The mill closed its order books soon after the deals and said it was cutting production, a regional trader notes. He also hears the mill said the deals were one-offs and done because of heavy rains, which would depress construction activity.
Last Wednesday, Chinese billet prices had reached lows of around $472/t fob for 3sp 150mm billet. On that day, a booking for 30,000t of Chinese 5sp 150mm billet was heard concluded at $505/t cfr Philippines.
Offers for Chinese blast furnace 5sp 150mm billet have risen by around $10/t from late last week. They are now prevailing at around $518/t cfr Manila and for Chinese induction furnace 5sp 150mm billet at $512-515/t cfr Manila, importing sources say. In Thailand, Chinese blast furnace 3sp 150mm Tangshan billet is currently offered at $505/t cfr Bangkok, Thai trading sources say. “The market is bad,” a Bangkok trader observes. The above-mentioned offers for Chinese billet are for August shipments.
Regional ASEAN billet prices are unmoved since last Friday. Indonesian blast furnace 3sp 150mm billet is still offered at $495/t for, while Vietnamese same grade and size billet is at $500/t fob.
Source:Kallanish
