Expectations of greater volatility in the steel markets for the remainder of 2021 were affecting the buying habits of some steel billet importers in Asia, sources told Fastmarkets on Tuesday (October 19th).
China's non-purchasing in the imported steel billet market continued on Tuesday, with consumers able to pay a maximum of $700-710 per tonne cfr for 3sp billets. However, prices in Southeast Asia rose above this level last week.
"There is more volatility coming in, so there is now a real risk premium for the billet at the next shipment dates," an Indonesian billet consumer told Fastmarkets. He added that it would be riskier to book a cargo to be shipped in December because he has no idea what the price in the finished steel markets will be when the material arrives.
"However, if the 5sp billet were ready for shipment in a few weeks, I would have bought a cargo from Indonesia at $720-730 per tonne." He concluded by saying.
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