Closing Chinese arb import window, scrap uptrend provide support for SE Asian billet prices

Prices in Southeast Asia’s steel billet market climbed during the week ended Friday October 18 because of higher scrap prices in the bellwether Turkish market and a closing arbitrage window for billet imports into China.

Chinese buyers were reported to have booked two cargoes involving at least 50,000 tonnes of Malaysia- and India-origin billet at $395-400 per tonne cfr China, while another transaction for prompt shipment of Iranian billet was also heard concluded at $400-405 per tonne cfr China. Buyers in China were growing cautious, however, because of the recent decline in domestic billet prices, which has led to a narrower spread with international prices, a Chinese trader said. Concerns that winter output restrictions in northern China could be less stringent this year, together with expectations for weaker long steel demand during the winter season, has also contributed to the poorer sentiment among importers, market sources said. Fastmarkets’ daily price assessment for steel billet, domestic, exw Tangshan, Northern China,...

Published

Lee Ken Kiat

October 18, 2019

14:30 GMT

Singapore