Major ex-ASEAN mills have started to attempt another round of price increases after signing some contracts at higher prices and seeing better sentiments in the market in general.
Official offer prices from the main exporter from Indonesia have been reported at $520/mt FOB for 3SP base billet, a number of sources confirmed, while another producer from Malaysia has voiced the same offer level. The previous price level from ASEAN producers was $500-510/mt FOB. “We can see some activity is returning, so mills are increasing offers now,” an international trader said. Some deals for ex-ASEAN 5SP billet were heard to have been signed at $520-525/mt CFR to the Philippines last week, up by at least $5-10/mt from the previous bids. Also, limited sales were done by the Indonesian mill in its local market at $510/mt CFR last week.
New ex-ASEAN offers for 3SP billet correspond to $540/mt CFR Manila, while 5SP prices could be up to $550/mt CFR, according to sources. But demand has not increased enough to support such a sharp hike. Most market sources believe that the tradable level for imported billet in the Philippines is $515-525/mt CFR for 3SP/5SP, versus the reference price at $510-525/mt CFR last week. “Finished steel product demand seems to be still weak in Southeast Asia, so now only offers are rising,” another trader from Singapore said.
