The rapidly rising prices and demand for billet in China have pushed up prices in the Southeast Asian market, but buyers have been not able to accept the uptrend and the tradable level has not hit $700/mt CFR unlike in China.
Only one deal has been reported for BOF/EAF 125 mm billet to the Philippines over the past week. A cargo for 23,000 mt of billet from Russia’s Far East was sold at $690/mt CFR early this week, SteelOrbis has learned from local sources. Some market sources believe that the price was slightly lower - at $680/mt CFR or so, but this could not be confirmed.
Most offers for ex-CIS, ex-Vietnam and ex-India billet have increased to $700-705/mt CFR Manila recently, a number of sources confirmed, but buyers have not been able to pay higher and have mainly been watching the market. “Higher prices may not be reflected in Manila until trader positions are stopped being unloaded here,” a trader said. “Mills that can do 150 mm are focusing on China now, while offers from the others are limited,” an international trading source said.
“The crazy roller-coaster in China has pushed up prices but it is only because of China’s production cuts. We cannot follow,” a buyer from the Philippines said.
Offers for import IF billet have been reported at $680-685/mt CFR Manila, but no deals have been heard. One source said that last week IF billets were traded at $668-675/mt CFR to the Philippines, but no new deals have been heard this week. “Most bids for IF billet are still below $680/mt CFR,” a source said.
There has been no information about a SAIL tender for 16,200 mt of 125 mm billet and market sources believe that the company will have to postpone it due to low bids.
Bids for import billet in other Southeast Asian countries have been even lower. Traders have failed to find buyers in Thailand, offering even $680/mt CFR due to low rebar prices in the country.
The SteelOrbis reference price for imported billet (excluding IF) in Southeast Asia has been increased to $685-690/mt CFR, up from $670-675/mt CFR late last week.