Negative moods have prevailed in Southeast Asia’s import billet market this week as China returned after its holiday with falling futures prices. Even though suppliers have been squeezed by high costs, some of them, from China in particular and rare ASEAN sellers, have decided to lower prices.
The lowest offers for 5SP billet have been reported for ex-Thailand IF material to the Philippines at $495-500/mt CFR, while since last week they were at $505-510/mt CFR. Some sources claim small tonnages of IF billet have changed hands at around $500/mt CFR, but this could not be confirmed by the time of publication.
Offers for ex-ASEAN BOF 5SP billet have remained at near $515-520/mt CFR, but the same grade of Chinese BOF billet has already been available at $510/mt CFR. “The billet mills are now selling at a loss and do not appear to be aggressively offering billet for sale. But the billet buyers see no good reason to resume active buying because rebar business is slow,” a Manila-based re-roller said.
The SteelOrbis reference price has declined slightly from $510-515/mt CFR last week to $505-515/mt CFR.
In Indonesia, offers for ex-China 3SP billet have been reported at $505/mt CFR at the lowest, which is slightly below the deal signed before the holiday at closer to $510/mt CFR. “I am not sure some decided to buy. Buyers are waiting for $500/mt CFR,” an importer said. Offers for ex-Iran billet have remained stable to Indonesia and Thailand at $510-515/mt CFR, being unworkable.