Some improvement in sentiment has been seen in the Southeast Asian billet market over the past week, with suppliers trying to push up offers, seeing a rebound in China. But the tradable price level in the region has stayed below $700/mt CFR and demand has remained weak.
A deal for ex-Vietnam IF billet was rumoured to have been done in the Philippines at $660/mt CFR or slightly above last week, which is in line with the latest bids. Nevertheless, this has not been finally confirmed from the buying side as most sources said that the majority of importers are staying away from purchases.
This week, offers for IF billet have been reported at $660-675/mt CFR Manila, while an offer for BOF billet from Vietnam has been at $685/mt CFR. In addition, some suppliers have started to ask $700/mt CFR minimum, seeing an improvement in the mood in China and expecting that higher prices may be accepted by buyers soon. “But I do not hear of firm bookings yet,” a Manila-based buyer said.
“The trend will depend on China. If China rocks the boat, then the market will be messy. If they stop interfering with the market, I guess there will be an upside from now on,” a local trader said.
The latest price ideas of Chinese importers have been at $680-685/mt CFR, similar to the level reported on Monday, but much higher compared to $640-650/mt CFR last week.
In Indonesia and Thailand, demand for import billet has remained limited and the number of offers has also declined due to the very low previous bids. Suppliers have been offering non-Iranian billet at $700/mt CFR or above. The indicative level for ex-Iran billet from traders has remained at $660/mt CFR.
The SteelOrbis reference price for import billet in SE Asia has been at $660-685/mt CFR with the midpoint at $672.5/mt CFR, down by $10/mt on average from last week, reflecting the latest deals and tradable level in the Philippines.