Billet import prices have weakened in ASEAN, Kallanish notes. While this is attributed to the softening futures market in China, sluggish regional demand for construction steel continues to keep trading prices within a narrow range.
Indonesia’s Dexin Steel has lowered its 3sp 150mm billet target export price to $445/tonne fob Tuesday. This represents a second $5/t drop since 31 March and a $10/t drop from its $455/t fob offer price since middle of March.
“China futures dropped and domestic demand for billet is not good because of the Eid holiday,” a Chinese trader in Jakarta says.
“Dexin’s prices are determined by the futures. They are an international mill and will not be very affected by Indonesia,” another Chinese trader says.
Prices have come off by up to $5/t in the Philippines since Friday, Manila-based trading sources say Tuesday. Offers for 5sp 150mm billet of open origin, either Chinese or ASEAN-origin for May shipment are now closer to $460/t cfr Manila than $465/t cfr.
Billet buying has been slow on a dip in overall business confidence amid economic uncertainties in the country. Rerollers are buying in conservative quantities solely for inventory replenishment, industry sources note.
