Sentiment in the Southeast Asian billet market has become more positive again since, even though demand has failed to improve, the rises in futures prices in China and the lack of cheap options in Asia have pushed up workable price levels.
Offers for ex-ASEAN EAF/BOF 130 mm 5SP billet have been reported at $535-540/mt CFR, up by $5/mt from the lowest levels reported last week. At the same time, the highest tradable level has been assessed at $530/mt CFR versus $520-525/mt CFR last week. There has been a rumor about a Malaysian billet sale at this level, but details have been still unknow by the time of publication. Some market sources said that there were at least two deals for ex-ASEAN EAF/BOF billets at $530/mt CFR Manila. “Counter-offers from buyers are at $525/mt CFR for EAF/BOF 5SP. IF and 3SP offers are in the range of $510-520/mt CFR Manila as there are not many buyers for them,” a Manila-based source said. Bids for IF material are not above $500/mt CFR, much below the previous deal price at $518/mt CFR, indicating that buyers do not need this quality at the moment.
“With the rally at SHFE [Shanghai Futures Exchange] and no other better offers, buyers will have no choice but to buy at the lowest offer which is still from Dexin in Asia. It will take some time but they have no other choice,” a Singapore-based trader said.
Dexin has increased its official billet offers to $520-525/mt FOB on Thursday, up by $5/mt from last week. The latest deals for traders were at $508-510/mt FOB late last week and at $515/mt FOB this week, with at least 100,000 mt sold mainly to traders, with the final sales destinations being Turkey, Latin America and Asia.
Offers of Indonesian billet in the local market have been at $535/mt CFR this week and some market sources believe that it could be accepted if someone needs to restock. There has not been much cheap Iranian billet available in the market and the latest offers have been voiced at $510-515/mt CFR in Indonesia and Thailand.
Rebar at Shanghai Futures Exchange have added 2.48 percent today, pushing spot billet prices up by RMB 35/mt today to RMB 3,733/mt ex-warehouse, according to SteelOrbis’ data. The ex-China 3SP billet reference price has increased by $5/mt to $530-540/mt FOB.