Demand for imported billet has improved over the past week in Southeast Asia with mills resuming sales after a pause. The price level in the market has not been as wide as earlier, as mills have reduced prices to attract customers, while low-priced offers for stressed cargoes by traders have almost gone.
In the Philippines, in total around 25,000-30,000 mt of billet from Russia’s Far East region have been sold at $645-650/mt CFR for February shipment this week. Though this level is lower than $660-670/mt CFR offered by a number of mills early this week, what is more important is that demand has started to return, sources said. “Buying interest in SE Asia is getting better these days, especially for 5SP,” a Singapore-based trader said. “It still a downtrend but at a slow pace,” a Manila-based source said. The latest bids from buyers in the Philippines have been reported at $640-645/mt CFR and buyers are in the market looking for purchases, sources have said.
In addition, ex-Russia and ex-Indonesia billets from mills have been sold to Taiwan at $640-645/mt CFR for around 40,000 mt in total, SteelOrbis has learned. “Dexin is above $645/mt CFR now as they usually increase prices after sales,” a source said.
“The spread between prices [for mills’ billet and traders’ stressed cargoes] was so wide, but it’s snapping back together,” he added. Last week, deals for stressed cargoes were done at $618-620/mt CFR to Thailand and Indonesia. This week, two stressed cargoes for 25,000 mt of billets in total have been sold to Taiwan at $625/mt CFR. “There is low buying. Sellers are also reluctant to offer very low,” a re-roller from Indonesia said.
A number of sources from Thailand and Indonesia have said that most offers in the market were from mills at $645-650/mt CFR this week. “People won't make decisions this week and might need to see whether price directions stay firm or not next week,” a Thailand-based trader said.
The SteelOrbis reference price has been settled at $640-650/mt CFR, up by $10/mt on average from last week.