Prices for imported billet in Southeast Asia have increased again over the past week even despite slower trading activity, as buyers have been resisting the uptrend. Strong scrap prices and bullish global billet market sentiment will keep supporting the Asian market.
The recent offers from Russia, Vietnam and some other Southeast Asian countries have increased to $530-540/mt CFR the Philippines and the tradable level has been settled at $530/mt CFR minimum, up by $15/mt on average from last week. The previous booking for Russian billet was reported at $520/mt CFR to the Philippines, but “this price is not available any more. People would jump on this price,” a trader said. The market sentiment has been robust, but transaction activity has fallen visibly. “So far there are no takers. But suppliers also stopped selling and withdrew offers,” a re-roller from the Philippines said.
Lower supply of billet in the Asian market has been reported by a number of sources. For instance, Vietnam’s Hoa Phat has been offering at $510/mt FOB, but recently they stopped offering, “waiting for the market change,” a trader from Vietnam said.
The latest deal for non-Iran billet to Indonesia has been reported at $515/mt CFR, but no new contacts have been reported so far.
Traders have been offering Iranian material at $510/mt CFR for Thailand and Indonesia. “But there is no buying power here,” a steel producer from Thailand said.
The SteelOrbis reference price for imported billet in Southeast Asia is at $530-535/mt CFR, up by $15-20/mt from last week and up $10-15/mt from earlier this week.