The resurgence in trading might be attributed to the upward movement in SHFE steel futures since last Thursday.
On 21 May, a Chinese trader finalized a deal for 20,000 tonnes of 3sp grade 150mm square Indonesian blast furnace billet for July shipment at USD 498/t FOB. Earlier, the same trader had closed a deal at USD 515/t CFR Philippines, resulting in a loss on the spot contract. However, with the current uptrend in Chinese futures, traders are likely profiting by squaring their positions.
Another Chinese trader secured 7,000 tonnes at the same price of USD 498/t FOB for the Taiwan market the following day.
According to a Chinese trader, the Indonesian mill's offer on 20 May stood at USD 495/t FOB. Last week, the same trader reportedly purchased 5sp grade billet at USD 497/t FOB from the Indonesian mill to fulfill a short order. It is rumored that a Philippine reroller acquired the 5sp cargo, translating to approximately USD 520/t CFR based on the FOB price paid.
In the previous week, the Indonesian mill purportedly sold 3sp grade billet in the ASEAN/China region at USD 490-493/t FOB. There was another booking within the past few days at USD 495/t FOB for the same base grade and size of billet by a different Chinese trader, as per some market sources.
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