Demand is the Southeast Asian billet market has been slack this week as most customers have been not ready to accept the higher offer prices announced by suppliers last week. Iranian material has been in demand and deal prices have increased from previous transaction price levels, but this has mostly been because customers have been rejecting higher prices from Russian and Indian exporters.
SteelOrbis’ reference price for billet in Southeast Asia currently stands at $395-405/mt CFR, with prices down $3/mt compared to last week, but this has been mostly because of weak sentiments in the market. Offers from Russia are at $405/mt CFR on average, but some traders said that $410/mt CFR for December shipment has also been voiced by some Russian exporters. Nevertheless, most market sources said that this level does not reflect the real market at the moment as customers are not willing to buy even at $405/mt CFR. “Everybody is trying to buy only for current needs. I don’t see reasons for prices to go up by December,” a Manila-based source said.
Some lower offers have been heard for Indian billet, at $395-398/mt CFR, but “these offers are mostly for induction furnace billet, so they should be lower,” an international trader told SteelOrbis. Vietnamese induction furnace billet has been available within the same range.
About 25,000 mt of Iranian billet has been traded at $388-390/mt CFR Thailand for November shipment, which is in line with the offers announced last week, but $5-8/mt above previous deals in Southeast Asia. Moreover, about 20,000 mt of Iranian billet have been sold to a trader at $350/mt FOB recently.