This week, import billet prices in Southeast Asia have as expected increased, but in some deals the gains have been less than most market sources had expected. Nevertheless, bullish moods still prevail in the market, with most suppliers insisting on higher prices and there has been not much cheaper supply available, SteelOrbis has learned from the market on February 23.
A deal for 25,000 mt of ex-Qatar 5SP billet has been reported as having been done early this week at $610/mt CFR Manila. And though this is definitely an improvement from the previous ex-China sale at $590/mt CFR, most market sources were expecting new deals to be at $620-625/mt CFR at least. “I don’t see anyone who can offer this low,” a local trader said. “The tradable level is $610-620/mt CFR Manila depending on the grade, though most offers are much higher,” a re-roller from the Philippines commented. Other billet exporters from the GCC region are not so aggressive and they are unlikely to offer such low prices to push volumes. For instance, another mill in the region has been evaluating the export price at around $610/mt FOB.
Other offers, reported to the Philippines, have been at higher levels. Some short position cargoes have been offered by traders at $625-630/mt CFR. “Buyers don’t want to pay $620/mt CFR, but it is for now,” a trader said.
Offers for ex-ASEAN billet from mills announced at $630/mt FOB have been translating to $645-650/mt CFR Manila. However, on Thursday some market sources said that they heard of another increase up to $640/mt FOB without mentioning the reason for this.
Also, IF billet from Thailand has started to be offered to the Philippines at $600/mt FOB, translating to around $615-620/mt CFR, too high for customers at the moment.
“I think the market is going up in tandem with the improvement in China. To me, China is just before a big surge. But the uncertainty is whether the government will allow base raw materials to go up considerably. If they step in, it'll be difficult, and somehow, I think they're stepping in,” a trader told SteelOrbis.
The SteelOrbis reference price for imported billet in Southeast Asia has been increased to $610-620/mt CFR, up by $25/mt over the past week.
In Indonesia and Thailand, the interest in buying has been minimal with only one offer for ex-Iran billet reported at $595/mt CFR. Also, some ex-China 3SP billet offers have been reported to Thailand at $620/mt CFR or slightly below.
According to market sources, a mill in Russia’s Far East region has started billet sales for May shipment, at $600/mt CFR Taiwan for commercial grade billet. This price would translate to around $620/mt CFR for vanadium-added material, while a deal in the middle of February was done for this billet grade at $615/mt CFR to the same destination.