Though most billet offers in Southeast Asia’s import billet market have been stable after the hike last week, some sellers are still hoping for an increase. However, for now buyers have been reluctant to accept any rises, waiting for a clearer market situation after China comes back from its holiday next week.
The SteelOrbis reference price in Southeast Asia’s import billet market, including 3SP and 5SP, has increased by $5/mt this week to $515-525/mt CFR, but buyers in Asia are bidding at $505-510/mt CFR maximum for 3SP and at $520/mt CFR at the highest possible for 5SP.
Market sources have reported that there is a lack of old position cargoes, taken by traders at below $500/mt FOB from ASEAN mills, and so 5SP billet offers to the Philippines are not below $525/mt CFR for Indonesian origin and are up to $540/mt CFR for Malaysian origin this week. “Buyers will pay $520/mt CFR maximum for urgent needs, but the market is not strong,” a Manila-based source said.
Ex-Thailand 5SP EAF billet offers have increased to as much as $530/mt CFR Indonesia and $525-530/mt CFR Philippines, up by $10/mt over the past week, “which is not workable,” a Jakarta-based source said.
Ex-Iran billet offers from traders have been at $515/mt CFR in Asia, while buyers have been targeting $505/mt CFR at best. Last week, a deal for 30,000 mt was rumored at $505/mt CFR to Indonesia.
Since there has been no support from Asian importers and since the Chinese market was relatively stable before the May Day holiday, some ASEAN mills like Dexin Steel have cut offers by $10/mt to $510/mt FOB this week. But at least one offer for 26,000 mt of billet from Malaysia has been heard at not below $520/mt FOB, with the targeted market being the Middle East, not Asia. No new deals have been reported after a few sales at $500/mt FOB for Indonesian 3SP billet.