Import billet prices in Southeast Asia have continued to fall this week as regional suppliers have been cutting offers to stimulate sales. So, after two rounds of cuts, the price drop in Southeast Asia in the past week has reached $40-45/mt.
Market sources said that ex-Vietnam EAF and ex-Indonesia BOF billet offers have come down to $710-725/mt CFR Manila, being mainly at $740-755/mt CFR last week. “The market is very soft... like marshmallow,” a re-roller from the Philippines said, adding that deals at $710/mt CFR or below are not excluded in the near future.
An offer for ex-Thailand IF billet was at $710/mt CFR Manila on Wednesday, but now the tradable level is hardly above $700/mt CFR, according to sources. “Prices are lower every day now, and are hard to finalize,” a trader said.
The SteelOrbis reference price has been settled at $710/mt CFR coming towards the end of this week, which is $20-35/mt below the level seen earlier this week and $40-45/mt down over the past week.
New offers from Chinese traders for ex-Russia billets to Southeast Asia, Thailand and Indonesia, in particular, have been heard at $640-650/mt CFR. Market sources said that traders are checking the market that way, understanding that demand is weighing on prices. The previous deal for ex-Russia billet to Indonesia was done at $665/mt CFR, as SteelOrbis reported yesterday.
An offer for an ex-Iran billet has been heard at $700/mt CFR Indonesia and Thailand this week, while last week a position cargo was available at $705/mt CFR at the lowest.