Following recent increases in the Chinese steel and raw material markets amid positive news about monetary policy and gradual restocking, billet offers in Southeast Asia’s import market have also rebounded again. The increase is nominal as most buyers have decided to postpone further purchases until the post-holiday period.
Offers for 5SP BF billet for Asian origins have been reported at $550-555/mt CFR, increasing by $5/mt over the past week. One of the large traders said that offers are starting from $552/mt CFR for BF billets in the Philippines, but buyers’ price ideas are low because not many are looking to book between now and early February. “There is still time to wait before booking April shipment,” he added.
After the latest deals for 5SP IF billet at $527/mt CFR Manila, there have been no new bookings or even offers for cheaper IF materials. “Bids were lower from the Philippines [after IF sales] as buyers were expecting prices to soften, but Dexin and China are still at around $530/mt FOB base, and so the Philippines are bidding too low and not getting any BF origin cargoes from China/ASEAN,” a Singapore-based source said.
The SteelOrbis reference price for imported billet in Southeast Asia has increased by $5-7/mt from last week to $540-542/mt CFR, mainly based on increased offers and the lack of cheap options at the moment.
At the same time, Asian BF mills have been able to keep prices stable or increase them in some cases in sales to distant markets. In particular, though offers from the major Indonesian producer are still at $530-533/mt FOB, one deal for Latin America has been signed at slightly above $535/mt FOB. “I still think they [Dexin Steel] can give $530/mt FOB, as we should not forget about the recent 50,000 mt sold at $528/mt FOB,” a trader said.
Ex-Iran billet offers to Indonesia have also increased, by $5-10/mt to $530/mt CFR Indonesia. “The price is reasonable for traders as FOB [prices] are higher, but buyers have not accepted it yet,” another trader said.
