On April 22, Indonesia's Dexin Steel reduced the export price of its 3sp grade 150mm billet by USD 2/t to USD 424/t FOB. Trading sources primarily explain this action on rising competition from Chinese billets with competitive prices. One local seller stated, "They cannot sell well," emphasizing that Dexin was forced to change its pricing in order to stay competitive in the international market. Two cargoes totaling 54,000 tonnes each were successfully sold by Dexin to the Middle East for USD 426/t FOB, most likely destined for Saudi Arabia, despite the weaker pricing.
With 3sp 150mm billet trading at about USD 420/t FOB, China's billet export market is still thriving. According to market participants, more than 300,000 tonnes of total tonnage were sold this month, mostly to customers in the Middle East. Last week, deal values ranged from USD 418 to USD 425/t FOB. Prices briefly dropped to USD 418/t before making a slight recovery this week.
In the meantime, billet prices in Southeast Asia are still falling. Indonesian manufacturers were forced to lower their offering to USD 440/t FOB after the billet at Philippine ports fell to USD 450/t CIF. These reduced offers, however, have not yet encouraged purchasing, indicating that consumers are either still wary or are waiting for more drops. In contrast, Vietnamese producers have maintained a consistent pricing of USD 460/t FOB for their billets. However, Vietnamese billets are becoming more and more viewed as being costly and no longer competitive in the present market as regional competition heats up.
China-origin 4sp 150mm billet transactions were obtained by two different Saudi rebar producers for USD 455/t CFR King Abdullah Port for 50,000 tonnes and USD 457/t CFR Jeddah Port for 55,000 tonnes. The loading of both ships is planned for the middle to late summer.
Russian billet offers to Türkiye in the Black Sea region is USD 450/t CFR, or about USD 430/t FOB. However, due to the continued downturn in the scrap market, Turkish customers are resisting and demanding lower prices in the USD 420/t FOB range. Furthermore, billet from the unrecognized Donbas republics is now available for purchase for USD 430–433/t FOB Black Sea, which is a modest decrease from earlier ranges of USD 430–435/t FOB. Firm orders may be eligible for minor discounts.
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