Prices for imported billet in Southeast Asia have increased over the past week mainly as Chinese sellers have been less aggressive and suppliers from the ASEAN region have also followed an uptrend, though demand has stayed weak and buyers have not supported the current uptrend, at least so far.
The SteelOrbis reference price for imported billet in Southeast Asia has risen by $7.5/mt over the past week to $510-520/mt CFR (the lower end corresponds to 3SP prices, the higher end to 5SP prices).
The lowest offer price has been reported to the Philippines for ex-Vietnam IF billet at $505/mt CFR. But some sources believe that overall offers for IF are very limited.
Offers for 3SP billet from Chinese traders have been reported at $510-515/mt CFR Manila this week, versus the lowest level at $505/mt CFR earlier this week and $500/mt CFR last Friday. But after a number of deals over the past few weeks at lower levels, trading has halted. “A big part is also due to buyers already restocked from traders for December and January shipments. Traders were selling at $495-505/mt CFR over the past three weeks or so,” a trader said. As SteelOrbis reported earlier, the lowest deal was for ex-China 3SP 150 mm billet at $490/mt CFR around two weeks ago. Moreover, since overall consumption is reduced in the ASEAN region, restocking potential has also been lower.
At the same time, the most popular 5SP billet in the Philippines have been offered from China and Southeast Asia at $520/mt CFR. Some sources said that it is possible to get $515/mt CFR for this grade from Chinese sources, who probably have positions, but again no deal has been reported for this grade due to very weak demand.
In Thailand and Indonesia, offers have also increased to $510-520/mt CFR, while only some traders can consider $505/mt CFR for Iranian billet.