Billet suppliers have increased offer prices for Southeast Asian customers this week due to the tensions between Iran and the US and the resulting temporary slowdown of bookings of ex-Iran billet and the possible increase in freight costs. At the same time, customers have not accepted the price increase yet and have continued to buy at the level seen before holidays.
The latest deals for 150 mm billet have been heard at $445/mt CFR mainly for Southeast Asian-origin material. “There were not too many deals. Customers are mostly watching the market,” a Manila-based re-roller told SteelOrbis. At the same time, traders said that offers from Malaysia and Vietnam have started to come at $448-457/mt CFR to the Philippines this week. “Last week, I got some offers at $440-445/mt CFR [from Southeast Asian suppliers], but now everybody has increased offers due to the Iran issue. We are not ready to buy as overall sentiments are not so good - scrap prices are stable and China is still not buying [billet],” another Filipino longs producer said.
The latest deal from Far East Russia has been at $445/mt CFR and after the holidays suppliers are targeting $450/mt CFR.
Demand from Indonesia and Thailand has been limited after the holidays. Offers have been heard at $440-450/mt CFR for Southeast Asian and Indian billet. But “The Thai market still waits for a clearer direction as local rebar prices do not support buying at higher than $435/mt CFR,” one customer in Bangkok said.
SteelOrbis’ weekly reference price for import billet in Southeast Asia has been at $445/mt CFR, stable week on week.