Prices for imported China billet to have risen further during the week to Friday March 5 following fresh deals at higher levels, market participants told Fastmarkets.
*** Price assessment for steel billet
Fastmarkets’ price assessment for steel billet, import, cfr China was $600-622 per tonne on Friday, up by $19-25 per tonne from $575-603 per tonne a week earlier.
Indonesia-origin blast furnace (BF) 3sp billet was sold at the start of the week at $600 per tonne cfr China, with a deal heard later in the week at $620-622 per tonne cfr.
Vietnam-origin BF billet was sold at $593 per tonne fob late on Thursday, which sources said would equate to around $613-614 per tonne cfr following the addition of freight costs. This is up from deals for Vietnamese BF billet closed at $580 and $582-583 per tonne fob late last week.
Prices for non-Asian-origin billet, which incur a 2% import duty on shipment to China, also increased this week. A tender for India-origin 150mm billet was heard closed at $575 per tonne fob this week, with Fastmarkets hearing that the winning traders are likely to sell the material to China for April shipment at $605-610 per tonne cfr.
*** Russia-origin billet
Black Sea Russia-origin billet was offered in a 10,000-tonne shipment to China at $603-605 per tonne cfr this week for April shipment, but no deal was heard closed. Offers for India-origin billet were heard at $610 per tonne cfr China on Friday.
Despite the rise in prices, market sentiment in China was more muted on Friday following sharp declines in futures ferrous prices and cuts in scrap buy prices of around 20-30 yuan ($3-5) per tonne by some smaller mills in eastern China, although major mills in Jiangsu kept their domestic purchase prices at 3,350-3,390 yuan.
Overnight falls in rebar, HRC and iron ore futures have dampened sentiment in the Chinese steel market.
“China’s Central Bank is issuing a warning that assets bubbles are in the making, so we can expect some cooling down measures soon,” an Indonesian mill source said.
*** Southeast Asia billet
China’s buying spree this week has made it very difficult for buyers in Southeast Asia to secure imported material.
Fastmarkets’ daily price assessment for steel billet, import, cfr Southeast Asia, which mainly looks at 120-150mm 5sp grade billet sold into the Philippines, was $600-610 per tonne cfr on Friday, unchanged day on day but up $15 per tonne from $585-595 per tonne week on week.
Offers were heard from a number of origins at $610 per tonne cfr Manila for 5sp over the week, while bids were heard at $590-597 per tonne cfr Southeast Asia.
Japanese electric arc furnace (EAF) billet was offered at $620-630 per tonne cfr Manila this week, but bids were only able to reach $595 per tonne cfr in the middle of the week.
*** Iranian billet
Iranian billet was heard sold at $560 per tonne fob for 30,000 tonnes this week, which the Indonesian mill source said would work out at around $585 per tonne cfr Jakarta.
“Customers in the Philippines are full of inventory now and they are good up to May, so they are not in a rush to buy prompt or early-shipment material. Shipments for late May are maybe attractive in terms of timing but they are still looking for the best offer,” a Philippine trader said.
If a consumer was to bid $605 per tonne cfr Manila, some sellers would likely accept this price, he said.
A South Asian billet trader thought it was likely that Filipino buyers would be keen to book material for April shipment.
“There are no buyers in the Philippines actively in the market at these prices now. There is one week left until buyers start to get desperate for April-shipment material,” he said.
The Indonesian mill source said he was optimistic that prices would fall soon.
“Current pricing is based on expectations of what buyers can take but most buyers are holding back and in wait-and-see mode,” he said.
“I hope prices will be around $590 per tonne cfr Indonesia next week; prices cannot go up anymore but also cannot go too low for now,” he added.
این مطلب بدون برچسب می باشد.
ثبت دیدگاه