Posted on 26 Apr 2021
Chinese billet importers have accepted higher prices for ASEAN billet, Kallanish understands.
Blast furnace 150mm billet from Indonesia and Malaysia was heard booked recently at $670-675/tonne cfr China, trading sources report. A regional trader says the combined tonnage concluded was around 50,000-60,000 tonnes.
The Malaysian mill, which sold a 30,000t cargo earlier in the week, secured $675/t cfr because its cargo is for May shipment. Two Indonesian mills supplied 10,000t each for June shipment at $675/t cfr and $670/t cfr respectively, another trader reports. He says the cargoes are for commercial billet. ASEAN billet transacted at $660/t cfr during the first two weeks of April.
Some Chinese traders say speculation could be behind the higher-priced deals. Although the domestic Chinese market has stabilised, it is still firm, a trader notes. An Indonesian blast furnace mill was offering commercial billet at $675/t cfr, a Chinese trader reported on Friday. He did not hear of deals, however.
A Vietnamese mill previously sold 3sp blast furnace billet at $635/t fob Vietnam during the week ending 16 April. It subsequently hiked export prices to $645/t fob but trading sources in Vietnam did not hear of concluded deals. Freight is around $30/t from Vietnam to China.
Meanwhile, there was an uptick in non-ASEAN billet orders in China in recent days. A 30,000t cargo, for June/July shipment, from an Indian mill was heard booked on 23 April at $648/t cfr China, trading sources report. There was also a 40,000t cargo of billet from Algeria booked at the same price of $648/t cfr China, for June shipment.
The above-mentioned Indian mill’s second 30,000t billet cargo was awarded in a 22 April auction at $598.5/t fob India. Indian traders say the June-shipment cargo is destined for China and estimate the award price translates to $645-650/t cfr China. The mill previously tendered another 30,000t parcel at $590.5/t fob India on 20 April. Both billet sales are on an advanced payment basis. Freight is estimated at $35-40/t to China.
Kallanish notes that a 20,000t 150mm billet June-shipment cargo, also from India, was booked on 22 April at $648/t cfr China.
Source:Kallanish
