Prices for imported billet have increased in Southeast Asia over the past week as sellers have hiked offers, seeing a resumption of imports in China. Nevertheless, overall sentiment in the market has not improved much yet and customers have been insisting on lower prices. Moreover, some decline in local billet prices in China has raised worries about future demand for imported billet from China.
Offers for different origin billet, including billet from Russia and Vietnam, have reached $448-450/mt CFR Manila, versus the latest deals for Russian material at $445/mt CFR reported last week. “Since China's return to the billet market, prices have moved up, but bids generally remain at $440-445/mt CFR Manila,” a local re-roller said.
Major suppliers in Russia’s Far East have been offering at $450-455/mt CFR to the Philippines and Thailand. “$455/mt is quite high in the current market,” a trader said. “There are very few bids at the moment,” another source added.
A cargo of IF billet from Vietnam has been offered at $450/mt CFR to the Philippines, up by $5/mt from last week, with no response from buyers.
Offers for ex-Iran billet from traders have increased to $445/mt CFR to Thailand. A deal for Iranian billet was closed at $440/mt CFR the Philippines last week, as SteelOrbis reported earlier.
Since local billet prices in China have declined over the past two days, customers in Southeast Asia have decided to wait and see as regards the further market development. The local price level in Tangshan has lost RMB 30/mt ($4.5/mt) over the past two days coming to RMB 3,390/mt ($503/mt) ex-works.
The SteelOrbis reference price for imported billet in Southeast Asia has increased by $5/mt week on week to $445-450/mt CFR.