Billet suppliers have been forced to further decrease prices in deals to Southeast Asia as there are still many offers for ex-Russia, ex-Middle East and ex-Iran products, while overall demand has not been very high. As a result, fresh deals for Russian billet have been concluded to the Philippines at $395/mt CFR, $5/mt below last week’s level. Some negotiations have been taking place at even lower levels as customers have been bidding at $392/mt CFR this week, SteelOrbis has learned.
Offers from the Middle East have been competitive in Southeast Asia - at about $395-400/mt CFR. About 30,000 mt of billet from the UAE changed hands at this range last week. “We still receive competitive offers from the Middle East. Prices are near to the bottom,” a large importer in the Philippines said.
Seeing some scrap price increase in Turkey, CIS-based suppliers have been insisting on a rebound and have started offering at $400-405/mt CFR late this week. Big mills from the Black Sea may be considering sales at this level, but customers are still not ready.
Customers in Thailand and Indonesia have been receiving offers for ex-Iran billet at $380/mt CFR, down $5/mt from deals to Southeast Asia a week ago. However, most recent sales of Iranian material have been heard to China.