Prices for import billet have started to roll back in Southeast Asia this week amid the slowdown in buying in China and lower bids there. Customers in Southeast Asia have just been watching the market, but some further price decline may trigger demand in the near future.
Offers prices from traders and some rare mills have been reported to the Philippines at $595/mt CFR at the lowest and up to $605/mt CFR. “The market is not good in Manila, but some do need to buy already,” a local source said. Last week, most offers were coming at $610/mt CFR minimum, but this week they have weakened in reaction to a slower market in China, which was the major driver of the uptrend earlier.
Some buyers from the Philippines have been waiting for prices to go down to $590/mt CFR and below before starting purchases.
Traders have been testing the market in Indonesia and Thailand with new lower prices too. “There is a flood of offers into Thailand. Many traders try to generate bids at $590/mt CFR, just to make a try. So it's the buyers’ market now,” a local source from Bangkok said. Another source confirmed that buyers in Thailand are waiting for prices to go down further below $590/mt CFR.
One Indonesian importer has been considering the market price level at $580-590/mt CFR, but no firm offers at this level have been reported yet.
The SteelOrbis reference price for import billet in SE Asia has declined to $590-600/mt CFR, down by $5/mt week on week.