While China is out of the market due to its holidays, some activity has been seen in the Southeast Asian billet market. Deal prices have posted some increase, but they are still below $700/mt CFR and suppliers expect a further more rapid hike next week when Chinese customers come back.
According to market sources, a mill in Russia’s Far East region has sold a total of 24,000 mt of 125 mm billet to a large Asian trader at about $630/mt FOB. And this trader has been actively offering this material in the market in the Philippines first at $695/mt CFR and then at $693/mt CFR. A number of sources have reported a deal for a part of the total tonnage at the latter price level to one of the long steel producers in the country, though it has not been finally confirmed. A few sources, including large trading houses in Singapore, said that there were three different buyers, as SteelOrbis has learned. Bids from a number of customers have been reported at $685/mt CFR or so, but this level does not reflect the current market conditions, sources have said.
As a result, the SteelOrbis reference price for imported billet (excluding IF) in Southeast Asia has increased from $690/mt CFR last week to $690-695/mt CFR.
Apart from offers for these ex-Russia billet, asking prices by the major EAF/BOF billet suppliers have increased to $710/mt CFR at the lowest and up to $730/mt CFR from some exporters. “Today, billet suppliers are trying to push for higher rates. Let’s see if the market will absorb the higher price when China returns from its holiday break,” an importer from Manila said.
Late last week and early this week, negotiations for IF billets in the Philippines were at $680-685/mt CFR and some small bookings were done. But for now the tradable level for IF billet has been assessed at hardly below $695/mt CFR. Offers for ex-Thailand IF billet have been at $702-703/mt CFR, and offers for ex-India billet have been at up to $710/mt CFR or even above.
Offers from traders for ex-Iran billets have been heard at $700/mt CFR in Thailand, but no deals have been done over the past week, since this level has been too high for customers. In Indonesia, a rumour about a sale of ex-Iran billet at $697/mt CFR has not been confirmed by the time of publication.
Most suppliers are waiting for Chinese customers to come back from the holidays and are preparing for a price increase. “I think we may see $720/mt CFR [China] next week,” a trader said, while deals ahead of the holidays were at $700-705/mt CFR.