Prices of imported billet for Southeast Asia have moved up further this week and some suppliers have managed to sign contracts at higher levels. As new deals are expected to be concluded soon to China, suppliers will try to hold positions in the first half of November.
A deal for about 20,000 mt of Russian billet was made at $402/mt CFR Philippines last week. But this week most offers have not been below $405/mt CFR, sources said. Ex-Russia billet has been sold to Southeast Asia, including the Philippines, at $405-410/mt CFR this week. Nevertheless, overall demand in Southeast Asia, even considering the recent bookings, has been far from strong. “Our counteroffers are at $400/mt CFR. Most buyers have inventories, because the local rebar market is slow,” a Manila-based re-roller said.
Customers from Indonesia and Thailand have received billet offers above $400/mt CFR this week, at least $5/mt above the lowest level seen last week, which is why “the market is silent,” an Indonesian buyer said.
At the same time, Vietnamese billet suppliers have also increased prices and have been uncompetitive so far. Offers from one blast furnace-based steelmaker in Vietnam have been heard at $405/mt FOB, with discounts of about $5/mt possible. Induction furnace billet has been available at $410/mt CFR.
There have been two tenders announced by major Indian mills this week. The target price is about $380/mt FOB or even higher (considering the freight to Southeast Asian countries, it is equivalent to $405/mt CFR and higher), sources said. But there has been no information that these tenders have already been closed by the time of publication. “Indian mills are likely targeting China,” an international trader commented.