Posted on 19 Jul 2024
Billet export prices are sliding in ASEAN, Kallanish notes. ASEAN mills are cutting prices to remain competitive with Chinese rivals.
Recent deals by Chinese traders were concluded at below last week's deal prices of $480/tonne fob for 3sp 150mm base grade ASEAN billet. A 40,000-tonne cargo from a leading Vietnamese mill was sold at $472/t fob on Wednesday, and 10,000t of billet from a large Indonesian mill was booked at $475/t fob. These cargoes are destined for Turkey, trading sources say. The Indonesian mill lost many orders due to its sticking to $480/t last week, a Jakarta trader observes.
Also on Wednesday, an Indonesian reroller ordered 20,000t of 3sp 150mm billet from China at around $485/t cfr Jakarta. A trader in Jakarta says this would work out at around $470/t fob, which he thinks is a “normal price”, but adds that the heard freight cost at $16-17/t is surprisingly low. The abovementioned Indonesian mill’s offer for 3sp 150mm billet was at $495/t cfr Jakarta at that time.
The pressure for ASEAN mills to keep in step with Chinese billet continued on Thursday. While another Jakarta trader insists the Indonesian mill’s offer at $475/t fob is the “best price”, several others say the mill has started to offer at $470/t fob. A regional trader believes the Vietnamese mill's offer is now also at $470/t fob. He notes that Turkish buyers are lowering bids, so $470/t fob may not work.
“Billet has come down but prices are still falling,” a Jakarta reroller says. “Business is slow and bad.”
Source:Kallanish
