Buying activity in the import billet market in Southeast Asia has been slow this week. Some suppliers have increased offers, while some have left them at the level of the previous deals, expecting to attract customers. Despite this, resumed buying of imported billet from China recently and further increase of domestic billet prices have been the positive signs for the Asian market, which may support the uptrend.
Most offers have been coming to the Philippines at $440-445/mt CFR, and some – at $450/mt CFR Manila, being almost in line with the previous week. There have been no reports about new transactions to the Philippines with the previous one was at close to $440/mt CFR, as reported last week. “Customers have enough stocks, if they want to wait. There are some cargoes booked a long time ago. Not much movement,” a source from the Philippines said. At the same time, seeing slow demand, major suppliers have not been very active too, offers have been mainly from Russia, India and Southeast Asain traders.
Demand from other Southeast Asain countries has also remained slack. Some buyers in Indonesia have reported about higher offers this week – at the level of $450-455/mt CFR. “This is because China is buying,” a local source said.
Indicative price level for ex-Iran billet has been heard at $435/mt CFR Thailand versus $430-435/mt CFR last week.
A cargo for 10,000 mt of billet from the major Indonesian billet exporter has been sold to Malaysia at $446/mt CFR over the week, which is in line with most expectations.
Nevertheless, another booking from the same exporter from Indonesia for 25,000 mt of billet at $440/mt CFR China has been widely discussed in the market. The price level has been assessed by the most sources as too low for now and not reflecting the current market conditions. Ex-Vietnam billet offers (for non-IF semis) have increased to $455-460/mt CFR, while this week two deals from the GCC and Far East Russia have been closed at $440/mt CFR, as reported by SteelOrbis early this week.
Following the recent hike on Monday, domestic billet prices in China have increased further. Today, on September 3, prices in Tangshan have added RMB 30/mt ($4.4/mt) over the day to RMB 3,490/mt ex-works. Rebar futures at Shanghai Future Exchange have increased by RMB 19/mt ($2.8/mt) from the previous day to RMB 3,790/mt. These moves have supported expectations that Chinese customers may accept higher prices for imported billet in the near future.
SteelOrbis reference price for billet in Southeast Asia has increased by $5/mt over the week to $440-445/mt CFR.