Posted on 13 Jan 2025
Chinese billet export prices are falling to levels low enough to entice buyers in ASEAN markets to return to purchasing, Kallanish notes. Deals for March shipments transacted last week at recent lows in Indonesia and Philippines.
Last Thursday, a large re-roller ordered a 20,000-tonne parcel of 5sp 150mm grade billet at $445/tonne cfr Jakarta. In Manila, some 20,000-30,000t of 5sp 150mm billet was also booked at $445/t cfr.
The bookings coincided with the continued softening in Chinese billet – 3sp 150mm billet fell another $5/t week-on-week to around $425/t, while the Shanghai Futures Exchange’s most traded, May 2025 rebar contract dropped CNY 70/t ($10/t).
The margins for the ASEAN deals are either very thin or even non-existent in the current bearish market conditions, a Shanghai trader says. The week before, a 15,000t parcel of 5sp 150mm Chinese billet was booked at $450/t cfr Manila, when offers were prevailing at nearly $460/t cfr. "Offers just after the new year holidays were still in the high $450s for 5sp, at around $458/459," a Manila trader notes.
In the Philippines, offers for open-origin 5sp 150mm billet have fallen by a further $5/t to around $450/t cfr Manila. These, March-shipment offers are for Chinese- or ASEAN-origin billet, to be determined by the seller. Suppliers in Indonesia are offering at $450/t cfr Jakarta for 5sp 150mm billet.
A leading Indonesian mill's export offer for 3sp 150mm billet, for March shipment, has been cut to $430/t fob, from $437/t fob last Monday. Kallanish assessed 5sp/ps or Q275 120/125/130mm square billet at $450/t cfr Manila, down $5/t on-week.
Source:Kallanish
