Asian billet prices dropped Oct. 10, as exporters started short selling activities after the Chinese rebar futures retreated.
Inventory levels continued to drop, while rebar output levels rebounded in the week to Oct. 10, according to market participants.
Buyers in Southeast Asia received offers $10/mt lower day on day at $490/mt CFR Manila for 3SP billet.
However, China and Indonesia were heard offering billets at $480/mt FOB, stable on the day.
“Most possibly it’s traders short-selling, and it makes more sense for them to short sell in the market considering HRC has fallen to only $510 FOB China,” a trader said.
Platts assessed 5SP 130 mm billet $5 lower on the day at $491/mt CFR Southeast Asia, and Chinese import 3SP 150 mm spot billet $2 lower at $404/mt CFR China.
In Tangshan, billet trading activity was moderate as some buyers were replenishing inventory. Strip trading in Tangshan was also resilient despite the decline in prices.
Platts assessed Chinese domestic Q235 billet down Yuan 20/ mt on the day at Yuan 3,260/mt on a Tangshan ex-stock basis.
In the Beijing rebar market, supply was still limited despite the rise in output.
According to market participants, it takes at least three weeks for the rising output to be transformed to rising inventory levels.
“Based on what we felt, demand is just stable. It was simply the declining output that supported prices,” said a trader.
According to traders, despite the expected recovery in output, the cargoes arrived were still limited.
Platts assessed the domestic Beijing HRB400 18-25 mm rebar spot price Yuan 20/mt lower on the day at Yuan 3,710/mt ex-stock in theoretical weight.
Chinese rebars were heard offered at $550/mt CFR Singapore in theoretical weight and CFR Hong Kong in actual weight. Buyers’ indications were still heard below $530/mt CFR Hong Kong.
However, Chinese mills were still reluctant to sell despite lower billet and HRC offers.
Platts assessed the 16-32 mm BS4449-grade 500 rebar price at $525/mt CFR Southeast Asia and the Chinese export 16-40 mm diameter BS500B-grade rebar at $515/mt FOB, both stable on the day.
