The prices for imported billet will rise significantly in the next deals to Southeast Asia, market sources have told SteelOrbis, taking into account the much higher price levels in negotiations with China.
For instance, an Indian state-owned mill has opened an export tender for 125 mm billet today, aiming for $650/mt FOB, which translates to $720/mt CFR the Philippines if the freight is not above $70/mt. Other suppliers also have offers not below this level and consider $715/mt CFR as the lowest possible for Southeast Asia.
This target level of suppliers is $27/mt above a deal for ex-Russia billets to the Philippines last week. And though there have been no bids at a price close to $720/mt CFR so far, “sentiments are looking up and deals should be above $700/mt CFR now,” a trader said.
Suppliers are bullish as they see price increases in China, and, even though trading has not been active so far, expectations are still positive. “I would say for $720/mt CFR you get booked [in China]. Offers are at $725-728/mt CFR minimum,” a Singapore-based trader said.
The reference price for Southeast Asia has been increased by $15/mt from last week to $705-710/mt CFR, based on the tradable level estimations of market sources.