SE Asian billet importers stay on the sidelines
Billet offer prices are steady at $465-475/t cfr Southeast Asia, trading sources in Southeast Asia tell Steel Business Briefing. These prices are for CIS billet. Trading sources report that import buying in the region is not active. Transactions in the region recently concluded at around $457-462/t cfr. A cargo of Brazilian-origin billet, diverted from its original destination of Vietnam, is being offered at $470/t cfr Indonesia. "We heard that the Vietnamese buyer cancelled because of financing problems," a trader tells SBB. Offers of Turkish billet are prevailing at $480-490/t cfr. Taiwanese-origin Grade 40 billet was open to bids last week at $465/t cfr Philippines. The Dubai debt crisis has caused Asian importers to be cautious. "It is a bit quiet. Buyers do not know what to do," a trader says. Uncertainty in future market direction is causing buyers to hesitate. A trader says that, while he is receiving buying enquiries, importers are concerned that offered shipments of CIS billet will arrive only in February or March. Vietnamese trading sources also say that their market is currently quiet. Some traders, however, note that buying interest in Indonesia has picked up and bookings will start soon.
China's domestic iron ore market remains stable
Chinese domestic iron ore prices have stabilised as steel mills' demand and the imported iron ore market are still rather weak, Steel Business Briefing learns from market sources. The price of 66% Fe iron ore concentrate in Tangshan, Hebei province, is around RMB 749-760/wet metric tone ($110-111/wmt), up about RMB 11-12/t from last week. In Hebei's Hanxin region, 66% Fe concentrate is priced at RMB 959/dry metric tonne ($140/dmt) including VAT, the same price it has held for the last three weeks. A trader from Rizhao, Shandong province, points out that the stable market price is due to lack of freight capacity at the end of the year. He also says that in December, both domestic iron ore producers and steel mills are planning maintenance work which will help to keep prices stable. Baosteel will begin the first round of iron ore price negotiations with overseas iron ore producers on behalf of Chinese steel mills in late December and local media said the contract price is expected rise at least 10-15%. Traders say this increase is expected to help drive demand for domestic iron ore.
Billet offer prices are steady at $465-475/t cfr Southeast Asia, trading sources in Southeast Asia tell Steel Business Briefing. These prices are for CIS billet. Trading sources report that import buying in the region is not active. Transactions in the region recently concluded at around $457-462/t cfr. A cargo of Brazilian-origin billet, diverted from its original destination of Vietnam, is being offered at $470/t cfr Indonesia. "We heard that the Vietnamese buyer cancelled because of financing problems," a trader tells SBB. Offers of Turkish billet are prevailing at $480-490/t cfr. Taiwanese-origin Grade 40 billet was open to bids last week at $465/t cfr Philippines. The Dubai debt crisis has caused Asian importers to be cautious. "It is a bit quiet. Buyers do not know what to do," a trader says. Uncertainty in future market direction is causing buyers to hesitate. A trader says that, while he is receiving buying enquiries, importers are concerned that offered shipments of CIS billet will arrive only in February or March. Vietnamese trading sources also say that their market is currently quiet. Some traders, however, note that buying interest in Indonesia has picked up and bookings will start soon.
China's domestic iron ore market remains stable
Chinese domestic iron ore prices have stabilised as steel mills' demand and the imported iron ore market are still rather weak, Steel Business Briefing learns from market sources. The price of 66% Fe iron ore concentrate in Tangshan, Hebei province, is around RMB 749-760/wet metric tone ($110-111/wmt), up about RMB 11-12/t from last week. In Hebei's Hanxin region, 66% Fe concentrate is priced at RMB 959/dry metric tonne ($140/dmt) including VAT, the same price it has held for the last three weeks. A trader from Rizhao, Shandong province, points out that the stable market price is due to lack of freight capacity at the end of the year. He also says that in December, both domestic iron ore producers and steel mills are planning maintenance work which will help to keep prices stable. Baosteel will begin the first round of iron ore price negotiations with overseas iron ore producers on behalf of Chinese steel mills in late December and local media said the contract price is expected rise at least 10-15%. Traders say this increase is expected to help drive demand for domestic iron ore.
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