Posted on 14 Jul 2021
Imports of billet into China have transacted at higher levels, Kallanish understands. But Chinese import buying continues to be uncertain because the market is swayed by Chinese steel futures which have been volatile.
Chinese buying of ASEAN billet closed at $700/tonne cfr last weekend, Chinese trading sources say. They are unclear about the details though. Vietnamese blast furnace billet was heard last Friday booked at $665-668/t fob Vietnam or $690-693/t cfr China. Thai suppliers are also heard to have recently sold re-exported Iranian billet at $650-655/t fob or equivalent to an estimated $690-695/t cfr China.
Certain regional billet suppliers have since raised offer prices. An Indonesian blast furnace mill is now offering billet at $705/t cfr China. There is also market chatter that a Thai mill is aiming to export EAF billet at $680/t fob and a blast furnace mill in Vietnam to export at $682/t fob. These prices may be too high for the Chinese import market however, a Chinese trader says. He notes a slight downward correction of CNY 30-50/t ($5-8/t) in the Tangshan domestic spot billet market on 13 July.
Some buyers in the Philippines have also increased their bid prices. A Manila trader says that he received a bid for EAF billet at $685/t cfr on 12 July. While the bid price is higher than what he received last week, his supplier wanted at least $10/t more. Thai-origin induction furnace billet continues to dampen market sentiment in the Philippines. Offers heard in Manila are as low as $665/t cfr. Deals for Thai induction furnace billet were heard to have recently taken place in China at $620-630/t fob or an estimated $$660-670/t cfr. Freight from Thailand to the Philippines is an estimated $30/t.
Source:Kallanish
