Posted on 29 Jul 2024
Billet import prices appear to have stabilised in ASEAN amid the rebound in Chinese futures markets. Prices had been rapidly falling in the two weeks prior to last Thursday’s recovery, Kallanish notes.
Offers for open-origin 3sp 150mm billet were at around $480/tonne cfr Manila last Friday, unchanged from earlier last week and down $10/t compared to the previous Friday. The premium for 5sp grade is around $5/t.
A leading Indonesian mill sold 3sp 150mm base grade billet last Friday at $460/t fob. The day before, on 25 July, 20,000 tonnes of the Indonesian mill’s billet was sold to Manila at $459/t fob. “It’s possible the cargo is to cover a previous short sell,” a Manila trader says. Chinese suppliers are indicating that Thursday’s futures price bounce has prevented values from falling further, he adds. “Though I think that it [price stabilisation] is short-lived.”
Chinese billet prices in Indonesia slipped last week. Chinese-origin 3sp 150mm billet was offered at $475/t cfr Indonesia last Thursday, down from $480/t cfr on Tuesday. A buyer reports Chinese 5sp 150mm billet for September shipment was offered at $483/t cfr Jakarta. "The supplier is selling short," he says.
Kallanish assessed 5sp/ps or Q275 120/125/130mm square billet at $490-495/t cfr Manila, down $5 on-week.
Source:Kallanish
