Import sources indicate that 5sp 130 mm square blast furnace open origin billet offers from ASEAN/China for April/May shipment are around $540/t cfr Manila, unchanged from the previous week. However, there is no consensus among traders on what direction the bids are taking.
It is stated that an Indonesian blast furnace facility sold 3 sp billet cargoes at $516/ton fob at the beginning of the week. However, it is stated that the offer for 3-piece billet is officially at $520/ton fob.
It is stated that unconfirmed news about China's plans to restrict or ban semi-finished product exports are circulating in the market. However, Chinese trade sources emphasize that these are just rumors. In particular, it is noted that these rumors emerged after Chinese authorities conducted inspections in some factories.
An ASEAN rolling mill points out that if production cuts are not mandated, Chinese mills will have to export their excess production. However, he thinks rumors of an expected export tax are unlikely to materialize.
This situation creates uncertainty on the billet trade in the region and causes fluctuations in the market.
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