Sharp rises in futures in China early this week and subsequent rises in Asian offered prices have impacted Southeast Asia’s import billet market. And though buyers have also voiced some small increase in bids, the increases in offers have been much bigger, and so trading has still remained on the low side.
Offers for 5SP 150 mm billet for Asian origins to the Philippines were at $460/mt CFR early this week and up to $470/mt CFR now, up by at least $10/mt over the past week. “I am not sure that deals are concluded actively as from what I know most billet customers are countering at $450/mt CFR Manila for modified 5SP 150 mm,” a local source said. There has been a rumor about a deal signed at $455/mt CFR to the Philippines, but this has been not confirmed by SteelOrbis’ sources, saying that this is too low for sellers and too high for buyers at the moment as the market [in China] has just started to reach a “plateau.”
Prices for Thailand and Indonesia have been even higher. In particular, some Thai buyers have received offers in the range of $469-475/mt CFR even for 3SP. The previous deal to this destination was at $445/mt CFR, but “it depends on the buyers now. If someone needs the Aug/early Sept shipment, I guess they might bid at $455/mt CIF to test the water,” a Bangkok-based source said.
In Indonesia, most offers have been heard at $465-470/mt CFR, also with no feedback from buyers.
The SteelOrbis reference price for import billet in Southeast Asia has been increased by $5/mt over the past week to $450-460/mt CFR.