Suppliers are seeking sharp price hikes for imported billet in ASEAN after China’s return from the Golden Week holiday. While some offers have softened slightly since the start of last week, buyers have been slow to accept higher prices and traders do not hear of transactions taking place.
In Manila, indicative offers for 5sp 150mm billet of ASEAN/Chinese-origin are heard at around $500/tonne cfr. These are for mostly January shipment.
A position cargo, probably from a trader, for 20,000 tonnes of 5sp 150mm billet for January shipment is heard offered at $490/t cfr Manila. The offer is for billet from either a leading mill in Vietnam or Indonesia, at seller’s option, a trader reports. He understands that discussions with buyers are still ongoing. "Many local billet users were caught off guard with the billet price increase," a Manila market source notes. He believes buying will return in the next two weeks.
The above-mentioned leading Indonesian mill is heard to have lowered its target export price for 3sp 150mm base billet to $490/t fob from $500/t fob on 8 October, Jakarta-based traders say. It previously sold billet at $481/t fob on 30 September. On the other hand, the leading Vietnamese mill’s target export price for 3sp 150mm billet is unchanged at $500/t fob. Freight is estimated at around $20/t within the ASEAN region.
In Indonesia, Chinese 3sp grade 150mm billet is offered at $507/t cfr and 5sp grade at $515/t cfr, subject to confirmation, a reroller says. “Some are offering 5sp also at $520/t cfr,” he adds.