Prices for imported billet have moved up further this week, but trading has been limited as most customers have been in wait-and-see mode. The main reason behind the rise is the not very high availability in the market, the gradual increase in scrap prices in Asia and expectations that China will continue to import billets.
Higher offers prices in Philippines meet lack of response from buyers
Most offers from international traders, as well as exporters from Russia’s Far East region, Vietnam and India, have been at $455-460/mt CFR Manila, stable or slightly higher (by $2-5/mt) than last week depending on the supplier. “Prices increased, but so far there is no taker. The market for finished products has weakened,” a re-roller from the Philippines said. Only small tonnage deals have been heard since last week so far.
A small volume of Japanese 3SP billet has been sold at $450/mt CFR to the Philippines with the length being uncommon. Also, there has been a rumour of some trade at $455/mt CFR, but this could not be confirmed by the time of publication, though “the buying price idea is around $450-455/mt CFR,” a trader told SteelOrbis. There have been a limited number of firm offers in the market and so some producers have been asking for $460/mt CFR for billet in the Philippines.
No change in other Southeast Asian markets
Customers in Indonesia have said that they still could find lower prices, at $450-455/mt CFR, or choose to buy Iranian billet, which is heard to have been sold at $440/mt CFR a week ago. “Indonesia is on holiday since Wednesday and will start work on Monday, so prices remained the same,” an importer said, adding that demand is unlikely to increase in the coming week.
The import market in Thailand has been inactive over the past week, with Iranian billet still mainly offered at $445/mt CFR.
China keeps buying, price increase small
According to sources, Indonesian producer Dexin Steel has managed to sell another billet lot to China at $454/mt CFR, while the previous sale from the same producer was at $451-452/mt CFR, as reported a week ago. Offers from Vietnam sellers have been heard at $458-460/mt CFR to China. Demand for imported billet is not strong at the moment, sources have said. Domestic prices for billet in Tangshan have been going up, but very slowly - over the past ten days they have added RMB 50/mt ($7/mt), coming to RMB 3,450/mt ($515/mt) ex-works on October 30.
Offers for non-Southeast Asian billet have been heard at $455/mt CFR, but the tradable value has not been above $445/mt CFR.
