Prices for imported billet in Southeast Asia have dropped sharply over the past week as traders have started to offer at much lower levels, trying to accelerate demand, which has already been weak for weeks. However, the consumption fundamentals have been very weak, so the further drop in prices has failed to trigger buying so far, SteelOrbis has learned from the market on July 14.
Offers for 3SP ex-Malaysia BF billet have been reported at $550/mt CFR to the Philippines and Thailand this week, down by $20/mt from the lowest offer level for this grade heard last week.
“Most offers are still at the level of $570-580/mt CFR Manila. But certain traders are shorting the market by offering lower billet prices,” a re-roller from the Philippines said, adding that offers at $550/mt CFR are available. “There are no deals now as the local market is very bad. Prices and demand are very low,” a Manila-based trader said.
The lowest price that Indonesia BF producer Dexin Steel may provide is $560/mt CFR for 3 SP and a minimum of $570/mt CFR for 5SP, sources said.
“This week, we have gone with $10-15/mt declines from last week, but mills are not very aggressive,” a trader said.
Offers for ex-ASEAN billet (not only Malaysian origin) have also been available in Thailand at $550/mt CFR for 3SP and $560/mt CFR for 5SP, while customers said that most offers are from traders.
IF billet sellers have also cut prices, with the lowest price from Thailand at $545/mt CFR Manila, versus $565-575/mt CFR mainly last week.
The SteelOrbis reference price for imported billet in Southeast Asia has declined by $10-20/mt over the past week to $550-570/mt CFR.
