In the Asian billet market, prices have been declining recently, and producing countries are turning to more flexible pricing strategies to maintain exports. While prices are softening for products from Indonesia, China, Iran, and Russia, weak demand in Europe and the ASEAN region continues to dominate market sentiment.
Indonesia: Prices Retreat, Price Gap Narrows
Indonesia’s export price for July-shipment billets has dropped to FOB USD 440/ton, a USD15/ton decrease compared to early April. To accelerate sales, Indonesian producers have shown more flexibility in pricing. The price gap between small billets and flat billets has also narrowed from USD25/ton to USD10/ton.
As a result, a 20,000-ton cargo was sold to Thailand at CFR USD 460/ton. This corresponds to an FOB price of USD 440/ton, nearly matching the market level seen at the end of March.
China: Offers Stable, Demand Weak
Export offers for China-origin flat billets with plate-grade quality remain stable in the range of CFR USD 520–530/ton. Although market sources mention a room for negotiation of up to USD 10/ton, no significant transactions have been concluded so far.
ASEAN and Europe: Russian Competition and Quota Impact
Offers from ASEAN countries to Europe for hot-rolled coil (HRC) grade flat billets are circulating around CFR USD 500/ton, similar to Russian export prices.
However, the EU import quota for Russian billets is being depleted rapidly, leading to a pause in large-scale deals. A limited volume of June-shipment Russian billets remains available in the market.
Türkiye: Selective Buying, Facing Iranian and Russian Competition
Türkiye maintains a cautious approach toward Asian-origin flat billets. At least one Russian producer has reportedly sold billets to Türkiye at CFR USD 450/ton, though Turkish buyers are generally unwilling to accept prices below USD 480/ton.
Iran: Seeking Sales Despite Sanctions
Despite ongoing sanctions, Iranian producers continue to seek export opportunities through aggressive pricing.
A 40,000-ton cargo was sold to Indonesia at CFR USD 440/ton (Jakarta arrival), with freight costs estimated at USD 30–35/ton.
Another Iranian producer has been offering at FOB USD 410/ton, but no large-volume sales have been reported as of yet.
Demand Outlook: Uncertainty Prevails in ASEAN
No clear offers have been reported from key ASEAN countries like Malaysia and Vietnam. The ongoing demand weakness is largely attributed to sluggish European buying interest and stagnant pricing. According to one distributor, monthly billet demand across Southeast Asia is limited to approximately 100,000 tons.
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