The majority of billet exporters have been insisting on higher prices at above $700/mt CFR to Southeast Asia this week. But since the sentiment in the Chinese market has been weaker again and rebar prices have not provided enough support, buyers have been mainly staying away from accepting an increase in billet import prices so far.
Most offers for BF or EAF billet (from Russia and ASEAN in particular) have been reported at $705-710/mt CFR to the Philippines over the past week, $10/mt higher than last week. “But billet customers are sceptical because local debar prices are falling,” a local mill source said. Bids have been heard at $695/mt CFR mainly.
Last week, a few trades for import billet were at $690-700/mt CFR in the Philippines with the highest level corresponding to late last week. But this week no new deals have been reported so far due to “high market volatility,” one seller's representative said.
Offers for ex-Vietnam IF billet have been at $700/mt CFR this week, while the previous trades for IF billet were at $680-685/mt CFR earlier this month in the Philippines. “Buyers will need to increase bids up to at least $695/mt CFR for IF and $700-705/mt CFR for BF, or else there is no chance of purchases. As iron ore and scrap are still strong, I don't think suppliers have a lot of room to lower prices presently,” a trader said.
Traders have been inviting bids in Thailand at $690/mt CFR for billet of open origin, but there has been a lack of response from buyers. The tradable price level for a position ex-Iran cargo is said to be $680-685/mt CFR Thailand with limited offers in the market. Traders’ offers for fresh material from Iran are unlikely to be much below $700/mt CFR, market sources believe.
The SteelOrbis reference price for import billet in Southeast Asia has increased to $695-705/mt CFR, up by $10/mt on average from last week.