Sentiment has remained bearish in the Southeast Asian billet market this week. One more deal for ex-China billet is reported as having been done to the region, but most bids from buyers have slipped further and market sources see a further slowdown of confidence in purchases.
The SteelOrbis reference price for imported billet in Southeast Asia, excluding IF billets, has settled at $515-520/mt CFR, versus $520-530/mt CFR last week. After a deal for 150 mm billet form China at $520/mt CFR Manila last week, no new transactions have been reported to the Philippines from China. Some sources see the tradable level for billet in the Philippines at $520/mt CFR for 5SP, while some said for EAF/BOF billets it would be hard to find bids above $510/mt CFR. “Purchasing confidence is very low. Even if you offer $510/mt CFR, some buyers are afraid. Hence, what is transactional this week is difficult to tell,” a trader said.
“China doesn’t offer many 120-130 mm billets, so sales to the Philippines are limited,” another source said. Bids for IF billets in the Philippines have fallen to $500/mt CFR or even below after the previous deal for ex-Vietnam IF signed a week ago at $512/mt CFR.
A deal for 20,000 mt of 150 mm billet from China has been reported to Indonesia at $510/mt CFR or slightly above. As Iranian billet suppliers have become less interested in sales to Asia, seeing weak market conditions, ex-China billets have become the most competitive. “They're focusing on other closer markets now,” a trader from Singapore said.
Ex-ASEAN billet offers have not been competitive in the region. Indonesian billet was offered to the Philippines at $535/mt CFR, while one Malaysian mill has started negotiations in Indonesia, asking for $530/mt CFR at the lowest.