Import billet prices in Southeast Asia have declined further this week as bids from all main consuming countries have been slipping, while competition has remained high. The overall price range for 5SP billet from major suppliers has been at $435-440/mt CFR, $5/mt below the level seen last week.
Russian billets have been traded at $440/mt CFR in the Philippines this week, while deal prices were $5/mt higher last week. The contract volumes were less than last week, SteelOrbis was informed. “Bids from Filipino buyers have already slipped below $440/mt CFR, while the market is bearish,” a Singapore-based trader said. About 10,000 mt of billet from Indian producer JSPL was sold to the Philippines at $440/mt CFR at the beginning of the week, as SteelOrbis reported earlier.
The offer range for Indian semis has come to $430-440/mt CFR this week, but SteelOrbis has not included $430/mt CFR in the reference price range as offers at such a level have been reported only in Indonesia, while countries like the Philippines and Taiwan are just bidding at this level.
Other suppliers, such as Japan and Malaysia, have been uncompetitive in the Southeast Asian market, offering at $445/mt CFR and above.
“The scrap market is going down and billet customers expect additional discounts in the coming few weeks,” a trader said. However, the sharp decline is not expected either if supply volumes do not increase further.
