Some slight price increases have been registered in the Asian billet market over the past week. Chinese customers have continued to buy imported billet and overall construction demand in the country has improved and so sources believe that new deals to China will be signed with another more visible increase. At the same time, customers in Southeast Asia are still more reluctant to purchase, trying to find material which may be sold at a discount.
Bids from China increase just slightly so far
The latest deal for ex-Vietnam BF billet has been signed at $435/mt CFR China, according to sources, which is $3/mt above the previous transaction reported early this week. This price level is equivalent to $426/mt CFR for non-Southeast Asian billet, which is not subject to two percent import duty in China. At the moment, offers for ex-Vietnam billet have been heard at $425/mt FOB for October shipment.
Also, a contract for Indian billet from a trader has been reported at $424/mt CFR also this week, which is almost in line with the previous price level. Also, there is information about a contract for ex-CIS billet at $422/mt CFR for September shipment, but it has not reflected the market level at the moment, a number of sources said.
“We are still getting bids at $425/mt CFR from China, but most offers are at $430/mt CFR and above,” a trader said. A rumor about a 5 SP billet sale from Japan at $427/mt CFR has been heard in the market, but this remained unconfirmed by the time of publication.
SE Asian customers look for discounts
In Southeast Asia, demand has remained limited. Moreover, the Philippines, the country with the highest bids at the moment, has been facing an increasing number of new infections and has been forced to re-impose fresh lockdown in Manila. The new restrictions will hit construction activities in the near future.
Offers have mostly been from Russia and India at $430-435/mt CFR Manila this week. But at the same time, there have still been some rare offers for IF billet or EAF/BOF position billet cargoes from traders at $420-425/mt CFR, sources have said.
Last week, in total, 30,000 mt of Japanese 125 mm billet were traded to the Philippines at $419/mt CFR. “It is definitely a discounted price, not a common billet,” a trader commented. Also, about 12,000 mt of induction billet from Vietnam have been sold at $420-425/mt CFR the Philippines.
Demand from Thailand and Indonesia has remained weak, as “the Philippines are paying $420-425/mt CFR, and here bids are lower,” a local source from Thailand said.
However, a contract for Iranian billet has been signed at $415/mt CFR Thailand. Fresh offers from Iran have been heard at $425/mt CFR Thailand, unacceptable to buyers.
The SteelOrbis reference price for imported billet in Southeast Asia has increased from $420-422/mt CFR last week to $425/mt CFR.