Prices for ex-China billet from a number of traders have been reported at lower levels again with some offers and even rare deals reported at below the $500/mt CFR mark, SteelOrbis learned from the market on May 25.
Offers for 3SP 150 mm billet from Chinese traders for only China origin have been at $485-490/mt CFR to Thailand and at least one deal has been rumoured at this level to Indonesia. “These are only short sales, other grades and other markets are still at $500/mt CFR or higher,” a trader in Southeast Asia said. Early this week, offers for open origin billet from Chinese traders were at $505/mt CFR Thailand and Indonesia.
In Taiwan, the lowest level of offers from Chinese traders has been at $500/mt CFR for Chinese origin, while for ex-ASEAN origins they are at $510-515/mt CFR Taiwan.
Though official offers for ex-China 3SP billet have remained stable today, May 25, at $490-500/mt FOB, traders from China have already started to voice $480/mt FOB for customers in Asia and the Middle East.
Offers to the Philippines have not been seen at levels as low as offers to other Southeast Asian countries. The lowest offers were for 3SP billet at $495-505/mt CFR, but, since over the past year a few IF-based producers in the Philippines have started operations and are able to offer 3SP billet, demand for this grade in the Philippines has been very limited. At the same time, 5SP 130 mm BF billet prices have been at $510/mt CFR or above. “I think the 5SP price will slide down to $505/mt CFR Manila soon,” a re-roller from the Philippines said. “Traders are trying to induce bids from buyers. At this level of $500/mt CFR, mills have already started losing money. A further drop is not a reality anymore,” a trader said.
The reference price for imported billet in Southeast Asia has settled at $500-510/mt CFR, versus $505-525/mt CFR yesterday and $515-535/mt CFR last week.