Prices for imported billet in Southeast Asia have resumed their declines after a one-week break, when suppliers have been testing the market with somewhat higher offers. The recent decline is due to low bids from the majority of customers, a lack of trades, and the prevailing opinion that the downtrend will continue, market sources told SteelOrbis.
Under pressure from buyers, ex-ASEAN suppliers for both BOF and EAF billets have lowered offers to $640-660/mt CFR Manila, mainly for 130 mm 3 SP and 5 SP, which is around $15/mt below the levels seen a week ago. The lower end of the range corresponds to the recent offer from Indonesian integrated mill Dexin for 3SP, meaning that for 5SP the tradable level has already slipped to $645-650/mt CFR in the Philippines.
“We are just back where we were pre-Dragon Boat festival or even lower. Buyers’ price ideas are very low now, at $630-640/mt CFR,” a source from Manila said.
Offers for IF billets to the Philippines have been reported at $635-645/mt CFR, down by $5-15/mt over the past week.
Another source from the Philippines has also confirmed very bearish sentiments, saying, “The market is very slow and weak. There is hardly any demand. I believe everybody is feeling the pinch of the crisis created by the war in Ukraine by Russia.”
The previous deal to the Philippines done for ex-Japan billet at $650/mt CFR was reported last week, while offers for ex-Russia billets have been reported at $610-620/mt CFR in the country. Market sources said that most customers in the Philippines specifically are avoiding buying ex-Russia semis due to the payment issues caused by Western sanctions.
In Indonesia and Thailand, offers for ex-ASEAN EAF and BOF billets (including local billet) are at $630-640/mt CFR. Moreover, offers for ex-Russia and ex-Iran billets are already coming at $600-615/mt CFR Thailand.
As a result, the SteelOrbis reference price for imported billet in Southeast Asia has been lowered to $640-650/mt CFR, down by $12.5/mt on average from last week. The SteelOrbis price is excluding ex-Russia and ex-Iran prices as these countries are under sanctions and their materials are less popular and have different payment methods usually.