The import billet market in Southeast Asia is expecting further price increases in the near future despite resistance from the majority of buyers. The latest deals to the Philippines have been done at slightly above $700/mt CFR.
According to market sources, deals for ex-ASEAN 150 mm billet, for Indonesian and Malaysian origin material, were done at $695-705/mt CFR the Philippines last week, while a contract for ex-Russia billet has been heard at $715/mt CFR, for 125-130 mm billet, which, however, is hard to confirm as all market sources believe that customers will reject purchases of this origin. “There was a consolidation of offers happening at around $710/mt CFR levels [from a trader offering ex-Russia billets], but buyers would be cautious now, I believe… We are expecting sanctions on Russia,” an international trader said. “Buyers want $700/mt CFR, $705/mt CFR maximum,” another trader said.
“Offers to Manila are generally in the range of $715-720/mt CFR for modified 5SP quality, 3SP can cost $5/mt lower,” a re-roller from Manila said, which is similar to last week’s level.
A lower offer of $705/mt CFR has been reported from an ex-Indonesia mill for 3SP, but an offer for 5SP billet is at $710-715/mt CFR.
The SteelOrbis reference price for imported billet in SE Asia (except ex-Iran) is at $700-710/mt CFR, stable from that reported earlier this week, but up from $690-700/mt CFR last week.
In addition, at least one deal at a higher level for 20,000 mt of ex-Indonesia 5SP 150mm billet has been reported at $725/mt CFR as being done to South Korea.
Most offers for ex-Iran billets from traders have been heard at $670-680/mt CFR, but after a deal at $650/mt CFR to Thailand bids have increased to $665/mt CFR. “One of the traders didn't accept a bid even at $665/mt CFR today,” a source from Bangkok said.
Also today, local EAF-origin billets in Thailand have been purchased at a price equivalent to $677/mt CIF. “Prior to the war news, buyers here were willing to pay $660/mt CFR,” another source said.