The gap between sanctioned Iranian and Russian billet and Asian origins has narrowed visibly over the past week in Southeast Asia, with the latter becoming more competitive, SteelOrbis has learned from the market on September 28.
A deal for ex-China 3SP billet has been rumored in Indonesia at $505-510/mt CFR this week. Though this has not been confirmed by the time of publication and most market sources agree that Chinese sellers were ready to trade at $510/mt CFR at the lowest, the deal is in line with market expectations, with a few buyers confirming $505/mt CFR is “the buyers’ price idea.”
At the same time, sanctioned ex-Iran billet, of which prices are usually up to $10/mt below prices of non-sanctioned Asian materials, has been offered at $510-515/mt CFR to Indonesia and Thailand. “$505/mt CFR is workable here but is not available widely, especially from ASEAN mills,” an Indonesian importer said, adding that, with the narrowing of the gap with Iranian billets, buyers will pay more attention to purchases of regional billets. No fresh deals have been reported to Thailand so far and market sources have said that offers are at the same level for both Iranian billets and slabs.
In the Philippines, offers for Asian origin 5SP billets have been mainly at $515-520/mt CFR, with the latest deals for ex-Russia and for Asian billets at $515/mt CFR and $515-517/mt CFR. For now, buyers’ price ideas have slipped to $510/mt CFR.
Russian suppliers have been reluctant to give firm offers after the introduction of the export tax, which is at seven percent at the current exchange rate. However, market sources have confirmed indications for ex-Russia billet at not below $510-515/mt CFR. The last sale done late last week from the leading mill in Russia’s Far East to Taiwan was at $505/mt CFR.