Posted on 24 Aug 2020
The Chinese billet import market picked up last week despite signs of slowing down the week before. Billet is heading to China because Southeast Asian buyers are not prepared to pay up amid sluggish demand, Kallanish notes.
During the past week, two parcels of blast furnace billet from Vietnam were sold to China. A 20,000-tonne cargo of 150mm square billet sold at $433/tonne fob – equivalent to around $443/t cfr China. A 60,000t parcel from another Vietnamese blast furnace mill was also booked at $442-443/t fob. This concluded at a higher price because it was for high-manganese billet. The billet has a minimum 1.4% Mn content, a trader reports.
October shipments of commercial grade billet from Malaysia and Vietnam closed probably early last week at $428-433/t fob, with offers now at $439/t fob, a Chinese trader says. Vietnamese blast furnace billet was booked at $435/t cfr China during the first week of August.
In Manila, Russian 100mm square billet is offered at $435/t cfr. Buying interest is very low now, a local trader says. He hears that buyers are unwilling to accept $427/t cfr for that cargo.
An importer heard an offer for Indian billet at $440/t cfr, which is most likely a position cargo. That Indian mill is not making fresh offers in the market, a regional trader notes.
Earlier in the week, Thai induction furnace billet was offered at $435/t cfr Manila, a Manila trader reports. But he heard it was eventually sold to China. Vietnamese induction furnace billet offers are prevailing at $435-440/t cfr Manila.
On Friday, Kallanish raised its 5sp/ps or Q275 120/125/130mm square billet assessment to $428-432/t cfr Manila, up $3 on-week.
Source:Kallanish
