Prices for billets in Southeast Asia’s import billet market have remained rather stable this week, but the situation is complex since, though major mills are going to insist on the current prices in the near future, traders may be more eager to sell at discounts, SteelOrbis has learned from the market.
Offers for 150 mm 5SP billets in the Philippines are at $453/mt CFR today, September 4, and were at $455/mt CFR early this week, while last week a contract for the same grade and size was reported at $455/mt CFR or just slightly above. The more popular 130 mm billet is priced at $458/mt CFR Manila. However, no new deals have been reported in the country this week as “the market has not come back buying,” a local trader said, adding that $450/mt CFR may be the tradable level for today.
“The prices will become confusing in the coming week because I think mills will try to maintain the status quo in prices, while traders will be ready to short the market with lower prices, given the bearishness of the general market,” a Manila-based re-roller said. A few international traders agree with this opinion, saying that buyers’ price ideas are going down, even despite some stabilization in official FOB offer prices. The latest ex-China FOB offer prices are at $435/mt FOB.
In Taiwan, the tradable level assessed by customers has fallen to $445-450/mt CFR, while last week a deal was reported at $458/mt CFR.
After a few deals done to Thailand for 3SP Chinese billet at $454-455/mt CFR late last week-early this week, firm offers have been limited, and market sources are waiting for new offers from traders at $450/mt CFR.
The SteelOrbis reference price for import billet in Southeast Asia has remained stable at $450-455/mt CFR this week.
