Following a rebound in Chinese futures markets, imported billet prices in the ASEAN region have stabilized. This stabilization comes after a period of rapid price declines in the two weeks preceding last Thursday's recovery.
Last Friday, offers for 3sp 150mm billet were around USD 480 per ton CFR Manila, remaining steady from earlier in the week but showing a USD 10 per ton decrease compared to the previous Friday. The premium for the 5sp grade billet remains approximately USD 5 per ton higher.
A major Indonesian mill reported selling 3sp 150mm base grade billet at USD 460 per ton FOB last Friday. On July 25, the same mill sold 20,000 tons of billet to Manila at USD 459 per ton FOB. According to a trader in Manila, this transaction might have been to cover a previous short sale. The trader noted that the recovery in Chinese futures prices has halted further declines, though he believes this price stabilization might be temporary.
Meanwhile, Chinese billet prices in Indonesia experienced a decline last week. Offers for Chinese-origin 3sp 150mm billet were at USD 475 per ton CFR Indonesia last Thursday, down from USD 480 per ton CFR on Tuesday. A buyer in Jakarta mentioned that offers for Chinese 5sp 150mm billet for September shipment were at USD 483 per ton CFR, indicating that the supplier might be selling short.
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