Offers for most origins of billets have declined in the Southeast and East Asian markets recently, though only sporadic deals have been reported so far as the majority of buyers have been asking for deeper discounts.
Lower ex-ASEAN and ex-China mills’ offers have resulted in declines in prices of traders in Southeast Asia’s import market. The latest tradable level for 5SP billet is said to be $510-515/mt CFR Manila, versus most offers at around $518/mt CFR last week. “It is really hard in Southeast Asia now. Buyers’ 5SP billet price target in the Philippines is only $505/mt CFR [translating to about $485-490/mt FOB from ASEAN or China],” a trader said.
In East Asia, Taiwan in particular, a new deal for ex-Russia 150 mm billet has been reported at $495/mt CFR, while the previous deal, for ex-China material, was reported at $508/mt CFR last week. “Now, no one even considers a billet price at $500/mt CFR,” another trading source said.
In Thailand and Indonesia, the latest offers for ex-Iran and ex-Russia billet have been at $490-500/mt CFR, though no new deals have been reported so far, while last week suppliers were trying to hold offers at $500/mt CFR at the lowest. Ex-Asia offers have been not workable at all in these countries - at around $515/mt CFR. Market sources are reporting ex-Indonesia wire rod offers at $535/mt CFR Bangkok, down by $10/mt over the past ten days.