Prices for billets have increased in the Southeast Asian market this week and the increase has been fixed in some deals. All major suppliers have stopped offering at below $430/mt CFR at the moment after sales to China and amid still positive sentiment in the market.
Buyers from the Philippines have to accept higher prices
A deal for 30,000 mt of ex-Vietnam EAF billet has been signed at $430/mt CFR this week, according to sources, which is $5/mt higher compared to the tradable value last week.
Offers from the CIS, India and Southeast Asian suppliers have increased to $430-440/mt CFR Manila this week, of which IF-based mills have been asking for $430-431/mt CFR, sources have said. There are no offers for IF billet or EAF/BOF position billet cargoes from traders at $420-425/mt CFR any more. “There may be some buying. But there does not seem to be much appetite for big quantities,” one of the major re-rollers in the Philippines told SteelOrbis.
Some trading sources have said that, taking into account current offers and the lack of cheap material in the market, $435/mt CFR should be workable for the next transactions. “Without lockdowns, buyers may increase bids,” a trader said. Last week, fresh lockdown measures were imposed in Manila again and will last until at least August 15. The country’s total coronavirus cases have hit the highest number in Southeast Asia.
The SteelOrbis reference price for imported billet in Southeast Asia has increased by $5-10/mt over the past week to $430-435/mt CFR.
Overpriced deals reported in Malaysia and Indonesia
One small contract for ex-India IF 3SP billet has been concluded to a Malaysian re-roller at $439/mt CFR, which, however, has been assessed by most market sources as too high and not reflecting the current market conditions. Last week, IF billet from Vietnam was sold at $425/mt CFR to the Philippines, as SteelOrbis reported earlier.
A contract of ex-India BOF billet from a trader has been rumoured at $430-435/mt CFR over the past week. Some sources said that the material is for wire rod production, but this transaction has not been confirmed by the buyer’s side by the time of publication.
Overall bids from Indonesia and Thailand are still lagging much behind offers. “Vietnam [non-IF] billet was offered by a trader at $442/mt CFR... Of course this is too high. Even the trader knows it,” a source from Indonesia said. “$430/mt CFR is too high for the market in Thailand,” a local re-roller said.
The indicative price level for Iranian billet has been heard at $425-430/mt CFR for October shipment to Thailand this week. No contracts have been heard.
Import billet offers to China increase
Ex-Vietnam billet has been offered at $442/mt CFR recently after the previous deal at $435/mt CFR China. At the same time buyers have been assessing $435-438/mt CFR as reasonable levels for them. Indonesian billet has been offered at $440/mt CFR. Southeast Asian billet is not subject to two percent import duty in China.
The lowest offers for Indian billet have been heard at $430/mt CFR China, sources have said, while the previous tradable level has been at $427/mt CFR.
