Billet prices in the Asian market have been relatively stable this week, though some downside risks have emerged. China has remained the main buyer, while demand from Southeast Asian importers has still been weak.
Deals for 70,000 mt in total of Indian and Russian origin billet have been signed at $370/mt CFR China this week. SteelOrbis reported earlier this week that a cargo from India was sold at $359/mt FOB and Chinese customers have confirmed that for a large volume (about 50,000 mt) the freight from India could be as low as $11/mt. Some sources report that offers from the CIS have started to be given at $365-370/mt CFR China.
Nevertheless, official offers from most major suppliers to Southeast Asia are still at higher levels - at $375-380/mt CFR for ex-CIS, ex-India and ex-Vietnam billet. “But it is too high. Suppliers will start to lower prices soon,” an Asian trader said. “At the moment $370-375/mt CFR is the cheapest price you can get [in Southeast Asia] now,” another trader said. A contract for small tonnage of imported billet has been signed to the Philippines at $370/mt CFR, but the origin has been unclear by the time of publication.
Demand from the Philippines, as well as Indonesia and Thailand, is still extremely weak with no new enquiries heard. There has been a rumour about a sale of Indian billet to Thailand, but the information has not been confirmed by the time of publication.
In the Philippines, the president Rodrigo Duterte has announced an extension of Manila’s lockdown to May 15.
SteelOrbis weekly reference prices for billet in Asia has slightly declined from $370-375/mt CFR last week to $365-375/mt CFR.
