Sentiment in Southeast Asia’s import billet market has remained negative after the Lunar New Year holiday since, even though traditionally the local Chinese market rebounds in this period, this time both steel and raw material product prices have posted steady decreases. As a result, prices for Chinese origin billet and offers from Chinese traders in short positions have become the most competitive in Southeast Asia.
The SteelOrbis reference price for ex-China 3SP billet stands at $515-525/mt FOB on February 22, down by $5/mt compared to the pre-holiday period. Traders are ready to offer at $515/mt FOB and this level seems easily achievable.
New offers for ex-China 5SP billet to the Philippines have been reported at $538/mt CFR Manila, which is the lowest in the market, while ex-ASEAN offers are still at $540-545/mt CFR. Last week, traders’ position offers were mainly at $545/mt CFR, but “now some have started to go short due to the negative mood in China,” a trader said. “Buyers are getting closer to $535/mt CFR for ex-China billet, not for ex-Dexin yet,” an international trader said, adding that the market is also waiting for fresh IF billet offers. Bids for IF billet are at $525/mt CFR at best, while for 5SP BF material the bids are at $530-535/mt CFR Manila.
In Indonesia and Thailand, market sources are also more focused on ex-China billet offers, which are at $530-535/mt CFR, but bids are not above $520-525/mt CFR. “There are minimal Iranian offers, so China is the best option in terms of offers, but there are no takers at this level either,” a trader in Jakarta said.
The SteelOrbis reference price for imported billet in Southeast Asia has settled at $530-540/mt CFR, with the midpoint at $535/mt CFR, stable over the past week since, though traders have lowered prices, the general level for ASEAN billet prices has remained not below $540/mt CFR.