Prices for imported billet have been gradually going down this week in Southeast Asia, with traders having position cargoes booked earlier remaining the most active. The price level has slipped below $600/mt CFR in deals.
In particular, in the first half of this week, a contract for 30,000 mt of ex-ASEAN 5SP billet was closed by a trader at $595/mt CFR, SteelOrbis has learned. This is down from last weeks’ deals for 20,000-30,000 mt in total at $600-605/mt CFR. Approaching the end of this week, buyers in the Philippines have voiced bids at $590-595/mt CFR, versus traders’ ASEAN offers at $600-605/mt CFR mainly. In addition, ex-China billet was offered by traders at $595-600/mt CFR early this week, according to some sources, but these offers have been for short positions, according to market sources.
The SteelOrbis reference price for imported billet in Southeast Asia has been corrected down to $590-600/mt CFR, versus $590-605/mt CFR early this week and $600-610/mt CFR late last week.
At the same time, trading in Indonesia and Thailand has been almost halted with ex-Iran offers not posting any significant decline and becoming very close to ex-ASEAN offers, pushing customers away. “I have gotten $595/mt CFR [for ex-ASEAN billet] and am confused as it is almost the same price as Iran [$590-595/mt CFR]. Then buyers may prefer non-Iran, but no deal has been heard here,” a source from Bangkok said. “I think buyers are in a wait-and-see mood. I would still say $580/mt CFR is the highest possible for importers,” a buyer from Indonesia said.