Billet offer prices have risen in China and ASEAN after Chinese steel markets reacted positively to Beijing’s latest stimulus rollout, Kallanish notes.
In China, offers for 3sp 150mm billet reached $458-460/tonne fob levels in the early part of Wednesday because of the increase in domestic ex-works billet prices and the surge of the Chinese yuan. No deals are heard. Suppliers appeared to have withdrawn offers after the Shanghai Futures Exchange subsequently cooled in the afternoon.
Spot Tangshan billet was at CNY 3,030/t ($431/t) on Wednesday versus CNY 3,010/t on Tuesday. One mill in Tangshan offered 3sp billet with 0.3% Mn content at $458/t fob Tianjin port on Wednesday, up $16/t day-on-day. Chinese exporters are finding it difficult to conclude deals amid a very strong Chinese yuan.
Meanwhile, a leading Indonesian mill raised its offer price on Tuesday, also for 3sp 150mm billet, to $450/t fob for January shipments, in tandem with the Chinese uptick. Some trading sources report hearing that the mill closed a deal for 50,000 tonnes at $450/t fob on Wednesday but Kallanish is unable to confirm the booking. The mill previously sold some tonnage at $442/t fob last Friday and a small cargo of several thousand tonnes on Tuesday at $445/t fob.
The mill's offer shot up to $467/t cfr Jakarta for 3sp 150mm billet on Wednesday, up from $460/t cfr previously.
The producer started offering and selling its January shipments last week because its December shipments are fully booked, a source at the mill says. There is also plant maintenance work scheduled in November/December.
