This week, billet prices in Southeast Asia have posted another decrease despite a lower supply volume than earlier. Limited demand has continued to exert pressure but the outlook has started to improve.
Offers for Indian and Vietnamese billet have been heard at $365-368/mt CFR in the Philippines and mainly at $360-365/mt CFR in Thailand and Indonesia. Last week, the price level was at $370-375/mt CFR Southeast Asia, according to SteelOrbis’ information. Sales over the past two weeks have been mostly from producers to traders, while end-users in Southeast Asia have been very quiet. This week, the Philippines has extended the lockdown at Luzon until April 30. “The problem is not the price, but demand which is absent,” a customer from Indonesia said. “Offers at $360/mt CFR are not workable here,” another Jakarta-based importer said.
Offers for ex-Iran billet have been heard in Thailand at $350/mt CFR, but no deals have been reported so far.
Though overall sentiments have been weak in the billet market in Southeast Asia, some signs of a price increase have appeared. As many large suppliers, especially from the CIS, have sold huge volumes to China over the past month, they have not had allocation for May shipment and even for June shipment in some cases. Chinese buyers have been less active recently after the latest conclusions at $358-359/mt CFR for Russian and Indian billet. But bid prices have increased slightly and the workable level is at $360/mt CFR at the minimum now, sources have said. “We have bids at $360/mt CFR, so we try to push offers to $370/mt CFR [China],” a trader said.