The upward mood has persisted in Southeast Asia’s import market this week, following rises in the Chinese market triggered by the news about production cuts in Tangshan and the announcement that the Chinese authorities will fight low-priced competition and cut outdated capacities.
Most offers for 5SP billet in Southeast Asia have been reported at $450-455/mt CFR Manila late this week, with most offers at the higher end of the range. “The prices are up $10/mt from previous [sales levels], but this is not real, no one is buying,” an importer from the Philippines said. Another local source said that it is possible to get $445/mt CFR for 150 mm 5SP, but for now traders are not very eager to negotiate, seeing the gradual uptrend in China.
In Thailand and Indonesia, offers have been limited and mainly at $445/mt CFR for August-September shipment Chinese 3SP billet, but even some demand seen at $440/mt CFR a week ago has faded away.
The SteelOrbis reference price for import billet in Southeast Asia stands at $445-450/mt CFR, increasing by $2.5/mt on average over the past week.
The Chinese billet reference price has settled at $425-430/mt FOB today, July 3, up by $2.5/mt on average since last week. But most offers have been at $430-432/mt FOB and “trading is almost halted as no one knows how sustainable the trend is”, an international trader said.
An Indonesian mill has held billet offers stable compared to yesterday at $430/mt FOB for October shipment, but this level is up by $5/mt week on week.