Buying activity has calmed down in the Asian billet market over the past week. A number of deals have been reported to China and Southeast Asia at price levels similar to last week, but overall sentiment in the market is more cautious on the buyers’ side.
Southeast Asian customers assess offers as too high, but exporters’ positions strong
Last week, there were two deals done for Russian origin billet to the Philippines and Indonesia at close to $440/mt CFR, in line with the contract level to Thailand, which was reported by SteelOrbis last week. “The volume was not big. People are not buying much nowadays, because billet saw a lasting increase, but finished product prices are not so good,” a re-roller from the Philippines said. “Demand for longs is slowly going up,” another representative of a mill said. Offers from Russia, India and Japan have been heard at $440-450/mt CFR Manila depending on the supplier, sources have said. Some exporters have left offers at the same levels, while some have increased them by a further slight margin, but in general prices are almost in line with the previous week.
“There is nothing below $440/mt CFR,” one of sources from Manila said, adding that at the same time demand has not been enough to fully absorb the increase seen last week, partly because of good stocks of some customers in the Philippines.
Though some tonnage of Russian billet were booked to Thailand last week, buyers in general are not ready to purchase at $440/mt CFR. “Billet prices are quite close to the local steel bar price, which is at $470/mt delivered,” one long steel producer from Thailand told SteelOrbis.
Offers from Iran have been coming to Thailand and Indonesia at $430-435/mt CFR, but no new bookings have been reported so far.
The SteelOrbis reference price for imported billet (except for Iran origin billet) has remained at last week’s levels of $435-440/mt CFR.
China’s buying appetite cools down
Chinese billet importers have been cautious in purchases over the past week. Low support from futures prices and overall very small changes in domestic billet prices have mostly been keeping importers away.
One deal for ex-Vietnam non-IF billet has been rumoured at $442-443/mt CFR China, the same price as the previous booking for base grade Vietnamese billet reported last week, but the details of this new contract have not been confirmed so far.
Also, Indian billet has been sold at $415/mt FOB, according to a number of sources, equivalent to $435/mt CFR or just slightly above. “It was a 100 percent advanced payment,” a trading source said. Most mills from India have been offering at not below $440-445/mt CFR to China recently.
