Asian Billet Prices Fall on Weak Buying Demand
Asian billet prices fell on competitive offers and continued weak demand on November 27. The recent sluggish downstream demand continued to weigh on spot prices, with some buyers adopting a wait-and-see attitude. Offers for 150mm 3SP billet originating from China were heard at $453/mt FOB China, while tradable prices for 130mm 5SP billet were heard at just under $483/mt CFR Manila, Philippines.
An Indonesia-based mill offered 150mm 3SP billet at $465/mt FOB Indonesia’s export port for February shipment, while 150mm 3SP billet originating from Vietnam was heard at $480/mt FOB Vietnam’s export port. China’s steel production in November showed little sign of slowing down compared to October levels, with production on track to surpass the 1 billion tonne mark by 2024. Platts assessed 5SP 130mm billet down $1/t from the previous day at $482/t CFR Southeast Asia.
This is good news for construction projects with a large steel structure such as thermal power plants, cement plants, oil refineries, offshore oil rigs… The fall in billet prices has led to a fall in hot-rolled plate and profile steel products.
