Billet demand in Southeast Asia stronger than in China, prices under pressure

Thursday, 28 May 2020 16:57:57 (GMT+3)   |   Istanbul
       

Interest in buying imported billet in Southeast Asia has been seen over the past week, contrary to the weaker demand from Chinese customers. At the same time, the workable price level has fallen slightly over the week.

Starting from last week, up to 50,000 mt of billet from Russia’s Far East ports have been traded to the Philippines at $390/mt CFR, sources have said. Though most offers have still been heard at $395-400/mt CFR Manila this week, “the selling price level is $385-390/mt CFR,” the re-roller from the Philippines said. Offers from Vietnam and Malaysia to the Philippines have slipped to $395/mt CFR, traders have confirmed, while they were at $400/mt CFR and above last week. A trader has been offering Indian billet to the Philippines at $393/mt CFR.

A deal for Indian billet has been concluded in Thailand at around $385/mt CFR. The price level has been relatively low compared to the recent SAIL tender closed at $377/mt FOB, as SteelOrbis reported earlier. However, sources have said that there has been another “tender at $367/mt FOB from Haldia port,” a trader has said. “Thailand is considering buying at $390/mt CFR now,” another trader said. A deal for 30,000 mt of ex-Iran billet to Thailand was concluded at $378/mt CFR recently, as reported yesterday. Buying in Indonesia has not improved yet and some customers are still on holiday.

Demand for imported billet in China has been weak and bids have hardly exceeded $380/mt CFR, while offers have been at $385-390/mt CFR. “Major sellers do not see China as the major market anymore,” a source said.


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