Asia steel billet importers fear more volatility in coming months

Expectations of further volatility in the steel markets for the remainder of 2021 were influencing buying habits among some importers of steel billet in Asia, sources told Fastmarkets on Tuesday October 19.

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."

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