Chinese billet export prices are trending down this week. 3sp 150mm billet offers for December shipments were at USD 480/ton FOB last week, but are now in the range of USD 460-470/ton FOB. A similar decline is also observed for offers to Turkey, where prices have fallen to USD 500/ton CFR.
In the Southeast Asian market, Chinese-origin 5sp billet with 0.7% manganese content is being offered at USD 493/ton CFR in Jakarta, while South Korean-origin 5sp billet is priced higher at USD 510/ton CFR. Market participants in Seoul say electric arc furnace (EAF) mills may turn to billet exports due to the weakening of the South Korean currency and the slowdown in the rebar market. However, traders believe it will be difficult to find buyers at prices of USD 510/ton.
A major steelmaker in Indonesia has raised its billet export price by USD 5/ton to USD 485/ton FOB, effective for February shipments. However, the increase was seen as high by traders considering the current market conditions. The company is also offering slabs at USD 485/ton FOB for December shipments and wire rods at USD 505/ton FOB for January delivery.
The Chinese and ASEAN billet markets are volatile, with rapid price changes making it difficult for traders to place orders. Uncertainty in the futures market is increasing the complexity of transactions, which is keeping market players away from deals.
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