Prices for import billet in Southeast Asia have posted a sharp fall this week amid the continuous drop in the Chinese market. Trading activity has been slow as market participants are waiting for the market to settle first and as it is still unclear whether prices have more space to move down.
The SteelOrbis reference price for import billet in Southeast Asia has settled at $447-465/mt CFR, where the lower end represents negotiations for 3SP billet from China seen in Indonesia, while the higher end of the range is for offers for 5SP to the Philippines. The midpoint of $456/mt CFR is $14/mt lower compared to last week.
Buyers in the Philippines have received offers for 5SP for open origin at $460-465/mt CFR since early this week, versus $471-475/mt CFR for the same grade last week. Up to Thursday, August 15, offers have remained the same, according to sources. “Let’s see if iron ore will reach $85/mt and coal $200/mt,” a Manila-based source said, commenting on the possibility of a further decline in billet prices.
Offers for ex-China 3SP have been coming to Thailand at $450/mt CFR, dropping by $15/mt over the past week. “I am not aware of any deals. No one knows where prices will find the bottom,” a Bangkok-based source said.
The lowest price for 3SP billet has been heard at $447-448/mt CFR in Indonesia. Markt sources said that negotiations have been taking place “at below $450/mt CFR, so I think it is China [origin], as Dexin would be at $460/mt CFR,” a local trading source said.