Posted on 17 Oct 2024
The ASEAN billet market is seeing prices weaken. Chinese billet is dropping this week, in tandem with a softening in Chinese steel futures, Kallanish notes.
Export offers for Chinese 3sp 150mm base billet were prevailing at $480-482/tonne fob China on Wednesday, Chinese and ASEAN trading sources say. This is lower compared to the $500/t fob levels heard last week.
Traders are offering open-origin blast-furnace/EAF billet in Manila at $485/t cfr for 3sp grade 150mm square billet and at $490/t cfr for 5sp grade 150mm billet. Offers for 130mm sizes are $5/t higher. The open-origin offers are for Chinese, South Korean or ASEAN billet. “Bids are $10 lower [than offers],” a regional trader notes.
“Traders are still offering at $490 cfr levels,” a Manila trader says. “This is reflecting either their competitive long positions or the lack of confidence in the market.” Another regional trader adds: “These traders are fishing for offers in order to get bids.” He does not think the offers are firm and says they are still subject to final reconfirmation.
A stronger Chinese yuan is supporting lower export prices, Chinese trading sources say. A Chinese trader says the current foreign exchange rate could save exporters as much as $5/t. “But they still cannot close deals,” he adds. He heard of bids in Manila at $485/t cfr for 5sp billet.
A leading Indonesian mill and a Vietnamese mill were offering earlier this week 3sp grade 150mm billet at $500/t fob.
In China, domestic billet prices in Tangshan dropped by CNY 20/t ($3) on Wednesday to CNY 3,190/t.
Source:Kallanish
