An upward trend has been seen in Southeast Asia’s import billet market in the past week, following the rises in futures prices in China, but most buyers have been reluctant to accept the higher levels after a number of deals signed by traders over the past 10 days.
The SteelOrbis reference price for import billet in Southeast Asia has settled at $440-460/mt CFR, moving up by $5/mt over the past week. Most offers are above $450/mt CFR, but buyers’ price ideas are still low, so the workable market price has failed to indicate additional movement, at least for now.
In particular, in the Philippines offers for 5SP billet from traders have been at $450/mt CFR at the lowest, according to some sources, while a few sources have already reported offers at as high as $458-463/mt CFR Manila. “I think the real price increased by $5/mt from the previous deal at $445/mt CFR last week,” a Manila-based importer said, adding, “It is hard to say if demand will pick up in China before the holiday. Confidence is not really flying high in China and there have been many recent disappointments in the Chinese steel market. So, anything can happen, for better or for worse.” Another source said that demand in the Philippines is not so high now after a few deals done at $445-450/mt CFR.
Offers for 3SP billet (mainly Chinese origin) have been heard at $455/mt CFR or so to Indonesia and Thailand. One deal was rumored last week at $435/mt CFR to Thailand, but for an unknown origin. For now, “Slightly lower than $460/mt CIF can't draw any interest from the market,” a Bangkok-based source said. However, there could be some demand from Indonesia with the latest bids for 3SP at $440/mt CFR.