Billet trading in the Southeast Asian market has remained poor this week as customers have continued to wait for discounts. At the same time, major Asian suppliers have not been very flexible, expecting demand to come back soon.
After a deal for ex-Vietnam EAF billet reported at $815/mt CFR Manila last week, no bookings have been made. The most popular 120-130 mm billets are still offered at $815-820/mt CFR and up to $830/mt CFR in the Philippines. One source said that he sees the tradable level as stable at $815/mt CFR as there are no discounts from major EAF or BOF producers.
Offers for 150 mm billets are coming at $820-840/mt CFR for ex-ASEAN and ex-China billets.
“Buyers can hold off from buying, but eventually they will have to purchase,” a Manila-based customer said. The SteelOrbis reference price for imported billet in Southeast Asia has been settled at $810-815/mt CFR, down by $2.5/mt on average over the past week, with the higher end of the range adjusted down by $5/mt.
Prices for ex-Vietnam IF billet have been at $805/mt CFR, while those for ex-Thailand IF billet have been at $780/mt CFR, similar to the latest deal for IF material to the Philippines.
Ex-Russia billets have been offered to the Philippines at $780-795/mt CFR, with no deals. “It seems banks are unable to work on Russian origin,” an international trader said. “There are no deals because the payment scheme is still being figured out,” a trader from the Philippines agreed, adding that, even with CAD (cash against documents) payment in US dollars, the remittance will still go through clearing in New York.
Other Southeast Asian importers - in Indonesia and Thailand - have focused on ex-Iran billet purchases over the past week or have remained out of the market. A deal for 20,000 mt of ex-Iran billet was done by a trader to Thailand at $750/mt CFR. This is a part of 42,000 mt cargo sold previously to the Chinese market, but now a trader is redirecting the volume. The remaining 22,000 mt are also expected to be sold to Thailand, marlet sources said. Another contract for 30,000 mt of ex-Iran billet for May shipment was sold at $760/mt CFR Thailand. “It makes sense as this price level is in line with the domestic market,” a Thai buyer said. This means that the tradable level for ex-Iran billet to Southeast Asia has slipped from $770-780/mt CFR to $760/mt CFR.