The Southeast Asian billet market has been very quiet this week with most customers being “super cautious,” according to market participants. Suppliers have had to cut prices earlier this week, but the very low prices from traders seen just yesterday have started to disappear on Thursday, November 11, after China’s futures prices have rebounded sharply.
Most offers from mills and large traders for BOF/EAF billet to the Philippines have been reported at $660-670/mt CFR, while IF billet has been available at $650-660/mt CFR Manila, stable from that reported earlier this week, but lower by at least $10/mt from last week.
“Maybe there will be a change in prices tomorrow because of the reported rebound in China’s futures,” a Manila-based importer said.
A deal for IF billet was done at $660/mt CFR to the Philippines last week, while a major mill purchased 30,000 mt of ex-Indonesia BOF billet at $670/mt CFR but for Davao, to where freight is higher than to Manila.
This week, a contract for ex-Malaysia BOF billet has been rumoured to SteelAsia as well, but the price could not been confirmed by the time of publication and some traders assessed the tradable level as being still at $660/mt CFR Manila or slightly above for other ports.
“Bids are at $650/mt CFR now, which is still difficult to achieve, even for IF billets,” a Manila-based trader said.
In the rest of Southeast Asia, the lowest offers for billets from traders have been reported at $650/mt CFR, while the much lower offer of $630/mt CFR, heard yesterday for at least one position cargo available in Indonesia, has disappeared today.
“I didn't hear of any booking this week as local rebar prices kept declining,” a source from Bangkok said. “I did hear an offer of $650/mt CFR this week, but not sure as for now. Things are changing and confusing,” an importer from Indonesia said.
The SteelOrbis reference price for import billet in Southeast Asia has been settled at $650-660/mt CFR, down by $10/mt from late last week, but stable since the level reported on Tuesday, November 9.
The price may correct upwards slightly in the near future, market sources believe at rebar futures at Shanghai Future Exchange have jumped by RMB 307/mt ($48/mt) or 7.42 percent compared to the previous trading day to RMB 4,443/mt ($693/mt).