Billet prices in China and ASEAN countries are hitting recent lows, reflecting the downward trend in China's steel market. In Singapore, the imported rebar market remains subdued as buyers wait for market conditions to stabilize.
On Thursday, Chinese traders signed a deal for 3sp 150mm billet from eastern China at USD 448 per ton FOB, which was confirmed by local trade sources. Meanwhile, the offer for the same grade and size of billet from China currently stands at USD 470 CFR Indonesia, while a trader in Jakarta estimates freight costs at USD 22.
Another Jakarta-based trader reported that offers could decrease as low as USD 465 per ton CFR. Port freight costs for shipments between 20,000-30,000 tons could decrease as low as USD 17.
A trader in the region observed that the market currently lacks price support due to the weakness in the Chinese economy and the uncertain global macroeconomic outlook. The trader noted that a leading Indonesian producer is currently offering 3sp 150mm billets at USD 455 FOB per ton, while some Chinese producers are offering as low as USD 445 FOB.
Meanwhile, Malaysian rebar, calculated on a theoretical weight basis for September shipment, remained stable at USD 500 DAP (delivered at place) to Singapore this week. The DAP Singapore price is recorded at USD 5-10 higher than the CFR Singapore basis.
The Singapore market is quiet with minimal buying. BS4449 500B 10-40mm diameter rebar was traded at USD 490-495 CFR Singapore on a theoretical weight basis, remaining stable from last week.
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