Billet offer prices to SE Asia continue to firm
Billet offer prices continue to rise, with offers at $470-480/t cfr Southeast Asia. But bidding prices by most buyers in the region are lagging behind by $10-20/t. Recent transactions were done at $460-465/t cfr, up by around $5/t from end-July, trading sources tell Steel Business Briefing. The appreciating scrap price is the main cause for the uptrend in billet offer prices, traders say. "I think prices will soon reach $470/t cfr," says one in the Philippines. The last booking done was $455/t cfr Philippines in middle of July and he is receiving bids at $460/t cfr now. Offers of Taiwanese material are prevailing at $475/t cfr and of Russian billet at $470-475/t cfr. Transactions were done at $460-465/t cfr Indonesia recently including for Turkish material, SBB is told. Ukrainian-origin billet was booked at $465/t cfr last week but new offers of Ukrainian billet are now at $480/t cfr. An importer says that he has received an offer for Indian material at $465/t cfr Indonesia. In Vietnam, buyers are generally bidding at the maximum of $455-460/t cfr whereas offers for CIS billet are prevailing at $470-480/t cfr, trading sources say. A trader reports CIS billet was last week booked at around $462/t cfr southern Vietnam for September shipment. Malaysian billet was heard booked recently at $485/t cfr Vietnam. Malaysian billet generally fetches a premium price because Asean-origin billet enjoys a preferential import duty and usually a shorter delivery time.
CIS billet export market up $30/tonne
Billet offer prices continue to rise, with offers at $470-480/t cfr Southeast Asia. But bidding prices by most buyers in the region are lagging behind by $10-20/t. Recent transactions were done at $460-465/t cfr, up by around $5/t from end-July, trading sources tell Steel Business Briefing. The appreciating scrap price is the main cause for the uptrend in billet offer prices, traders say. "I think prices will soon reach $470/t cfr," says one in the Philippines. The last booking done was $455/t cfr Philippines in middle of July and he is receiving bids at $460/t cfr now. Offers of Taiwanese material are prevailing at $475/t cfr and of Russian billet at $470-475/t cfr. Transactions were done at $460-465/t cfr Indonesia recently including for Turkish material, SBB is told. Ukrainian-origin billet was booked at $465/t cfr last week but new offers of Ukrainian billet are now at $480/t cfr. An importer says that he has received an offer for Indian material at $465/t cfr Indonesia. In Vietnam, buyers are generally bidding at the maximum of $455-460/t cfr whereas offers for CIS billet are prevailing at $470-480/t cfr, trading sources say. A trader reports CIS billet was last week booked at around $462/t cfr southern Vietnam for September shipment. Malaysian billet was heard booked recently at $485/t cfr Vietnam. Malaysian billet generally fetches a premium price because Asean-origin billet enjoys a preferential import duty and usually a shorter delivery time.
CIS billet export market up $30/tonne
CIS billet export prices
27 Jul 09 3 Aug 09 10 Aug 09* 17 Aug 09* 24 Aug 09* FOB $/t
390 -405 405 – 435 410 – 435 415 – 435 415 – 435 * SBB Forecast
27 Jul 09 3 Aug 09 10 Aug 09* 17 Aug 09* 24 Aug 09* FOB $/t
390 -405 405 – 435 410 – 435 415 – 435 415 – 435 * SBB Forecast
The CIS billet export market is "defying all odds" as producers raise offer prices and buyers are tentatively accepting new higher levels, market sources tell Steel Business Briefing. Rising steadily from around $390-410/tonne fob (€271-285/t) Black Sea last week, and despite earlier expectations of weakening, the price of billet from the CIS is now around $420-435/t fob Black Sea. This includes a concluded deal at $435/t fob Black Sea into North Africa and the Middle East yesterday, sources say. Although the fundamentals of the market have not changed greatly, the majority of sources say that buyers appear to be "more adventurous in their deal-making". With stock market indexes showing modest improvement, government fiscal measures taking effect, and no sign of scrap prices yielding, the perception of the market has changed for the better, one seasoned market observer explains. Speculation is also rife, he adds. It is only the perception that has changed, another market source notes. While Asia and particularly China, are "still strongly out in the market", improvement in long finished products' demand is needed to sustain the current trend. It is clear now that it is a producers' market, although an influx of extra available tonnages could quickly change this situation, another source claims. "We need to see returning demand for, and buying of, long finished products from the big markets - Middle East, Algeria, Egypt and USA," a European producer concludes. He adds, however, that weakening is unlikely right now, in view of continuously rising costs and steadfast demand.
Shanghai merchant bar prices softening
Shanghai merchant bar prices are showing signs of weakening, but market sources do not envisage large price falls in the short-term. Since the beginning of August, merchant bar prices have risen a number of times, by RMB 400/tonnes ($59/t) in total, in the wake of massive price hikes for leading products such as rebar. While some traders are holding their offers at about RMB 4,450/t ($651/t) for 50x50x5mm angles sourced from Maanshan Iron & Steel (Magang), others have clipped prices by RMB 20/t to RMB 4,430/t for the same material. Meanwhile, 16a channels sourced from Magang are priced at about RMB 4,380/t. Steel Business Briefing notes that prices for both products have surged by about RMB 700/t this month compared with those for early July. "Rebar prices have started to decline and have dampened merchant bar market confidence to some extent," a Shanghai trader says. He adds that some traders remain profitable even after the small price cuts. Another local trader tells SBB that merchant bar inventories have not increased greatly, which could prevent a price collapse occurring. Further, the market anticipates that Baosteel will raise its prices for September, which will immediately lift the market again.
Malaysian Ringgit Exchange Rate