Since demand remains slow in Southeast Asia and sentiments are still bearish, prices for imported billet have continued to go down rapidly even though the previous cut was seen just late last week, SteelOrbis learned from market sources.
The major Indonesian BF producer has cut offers for 3SP billet to the Philippines to $730/mt CFR, which were at $740-745/mt CFR at the lowest on Thursday last week. “The market is on a downtrend. Everybody is cutting prices just to have a share of the market,” a trader from the Philippines said. Another source from Manila said that there is still a big price drop as buyers are watching and waiting for the new bottom.
An offer from Japan for 3SP EAF billet was reported at $745/mt CFR on Friday, down by $10-15/mt from the level in previous negotiations. But market sources are sure that the price will be cut more in the near future.
“We expect new lower prices from other suppliers,” a source said.
In addition, offers for ex-Russia billet have also moved down. It was reported that Evraz lowered the offer price for the Philippines by $10/mt to $690/mt CFR. But even though a deal was done, according to sources, at $700/mt CFR a week ago, demand for ex-Russia billet in the Philippines is still very low due to the sanctions. “Banks will not facilitate here. Risks are too high,” a Manila-based source told SteelOrbis. A South Korean trader has offered a cargo from another Russian mill at $720/mt CFR the Philippines.
The SteelOrbis reference price for imported billet in SE Asia has been cut again - to $730-745/mt CFR versus $750-755/mt CFR settled last week.