China’s absence from buying on the import steel billet market continued on Tuesday, with consumers able to pay a maximum of $700-710 per tonne cfr for 3sp billet. But prices in Southeast Asia have moved above this level in the past week.
“There is more volatility coming, so there is a real risk premium on later shipment dates for billet now,” an Indonesian billet consumer told Fastmarkets. He added that booking a December-shipment cargo would be riskier because he had no idea what the price in the finished steel markets might be by the time the material arrived.
“[But] if 5sp billet were available for shipment in a few weeks’ time,” he said, “I would take a cargo at $720-730 per tonne cfr Indonesia.”
Part of the volatility has come from higher steel...