SunSirs: China's Billet Export Market Prices Remained Low Overall Last Week

Tangshan, China:

Based on surveys of 20 major warehouses and ports across six cities nationwide, this week's billet warehouse inventory totaled 1.7516 million tons, down 10,400 tons week-on-week. Breakdown: Tangshan 1.689 million tons, Tianjin 5,500 tons, Wu'an 1,000 tons, Jiangsu 56,100 tons. On Friday, the ex-factory price for Tangshan Qian'an square billets stood at 2,930 RMB/ton, down 20 RMB/ton from January 30. More>>

China Imports & Exports:

Last week, China's billet export market exhibited low-level fluctuations with pronounced buyer-seller negotiations. Early in the week, export offers for 3SP 150mm billets centered around $440–445/ton FOB China, maintaining overall stability. In the Philippine market, 5SP square billet quotes ranged between USD 460–470/ton CFR Philippines, with noticeable competition among different suppliers.

Subsequently, influenced by futures volatility and buyer pressure to lower prices, the market negotiation range temporarily shifted downward to USD 435–440/ton FOB China. However, transaction progress remained stalled. Philippine buyers' counteroffers were significantly low, resulting in limited market transactions.

Midweek, mill quotations remained relatively stable. Some mills in Northeast China reported favorable order volumes, with tight export resource allocation leading to cautiousness toward low-price transactions. Overall, while quotations did not decline further, insufficient downstream demand continued to constrain deal volume.

China's 3SP 150mm billet export offers remained near $441–442/ton FOB China, while Philippine market quotes held at $465–470/ton CFR Philippines. Market participants widely believe that amid weak futures and subdued pre-holiday demand, billet exports will continue range-bound fluctuations in the near term.

Southeast Asia:

Philippine billet prices trended downward overall amid subdued market activity. 5SP 130mm billets quoted at $459/ton, while 5SP 150mm billets retreated from previous highs of $467–468/ton CFR Manila to $457–458/ton CFR Manila. With prices falling, buyers have become cautious, with their offers generally as low as around $450/ton CFR. This has led to a persistent wide gap between buyers and sellers, resulting in extremely limited actual transactions and a sluggish market.

CIS:

This week, Russian slab export prices weakened. Mills offered modest discounts, yet transactions remained sparse with little change in market fundamentals. Reports indicate one Russian mill quoted slabs to Turkey at $435-440/ton FOB, while another quoted $439-445/ton FOB. No new offers to Italy have been reported. Market expectations suggest achievable prices for Turkey and Italy range between $440-460/ton FOB. Overall slab export prices in the CIS Black Sea region declined by $5/ton week-on-week from the previous week's $428-465/ton. Under EU import quota restrictions on Russian steel, transaction prospects remain uncertain despite minor price reductions by mills.

Overall, Russian slab exports remain under sustained pressure from constrained demand and trade policy restrictions. Even if prices ease further in the short term, the scope for improved transactions remains limited.

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