Demand from customers, mainly in the Philippines, has supported a further slight increase in import billet prices in Southeast Asia, even though there is still no support from China where buyers are staying out of the market.
The SteelOrbis reference price for imported billet in Southeast Asia has increased by $5-10/mt since early this week to $510-520/mt CFR amid more deals reported to the Philippines. The price level is $20/mt higher on average compared to last week. A deal for ex-Malaysia BF billet (around 10,000 mt) was signed at $510/mt CFR in the Philippines in the middle of the week. The bookings for billet from Russia’s Far East region to the country were reported at $510/mt CFR and then at $515-520/mt CFR. As SteelOrbis reported earlier, ex-Vietnam non-IF billet was traded at $515/mt CFR Manila also this week. “People can buy at $515/mt CFR. Offers from everywhere are increasing,” a trader said.
Even taking into account weak demand for imported billet from China since last week, demand from Southeast Asia has supported the continuation of the uptrend. Market sources expect negotiations will start from $520/mt CFR for imported billet next week.
Apart from the Philippines, some demand has been seen from Indonesia at up to $510/mt CFR, as SteelOrbis reported earlier, but customers in Thailand have remained silent, mainly focusing on purchases of ex-Iran billet from traders at $470-475/mt CFR.