Offer prices for imported billet in Southeast Asia have increased this week, following positive changes in mood in China, triggered by rising futures prices. But trading has been limited as buyers witnessed discounts just late last week and they are not sure how sustainable the current uptrend can be.
Offers for ex-China 5SP 150 mm billet to the Philippines have been at $455-456/mt CFR, while those for the same grade but more popular 130 mm size have been at $462/mt CFR Manila and higher. As SteelOrbis reported last week, a deal for 10,000 mt of 5SP 130 mm billet was done at $447-450/mt CFR Manila. “Last Friday traders were offering incredibly low numbers for ex-China billets in Asia. Things then started to heat up this week, so I did not hear anything sold during the week,” a Singapore-based trader said. Offers for Chinese 3SP billet in the Philippines were at $450/mt CFR this week.
Also, to Indonesia and Thailand ex-China 5SP and 3SP offers have been reported at $455-460/mt CFR and $450/mt CFR, respectively, while bids have been at $437-440/mt CFR since late last week. “There are no low offers at such levels [near $440/mt CFR] after trade tensions between the US and China were resolved. Buyers here won't follow higher prices. In addition, shipments become longer, for end July-early August and some even for the end of August, which is in the rainy season, so business will be slow,” a Bangkok-based source said.
Last week, an ex-Russia 120 mm billet sale was confirmed at around $460-465/mt CFR to Taiwan, but for vanadium-added material, which translates to around $445/mt CFR for the base billet, according to market sources.
The SteelOrbis reference price for imported billet in Southeast Asia has settled at $450-455/mt CFR, increasing by $9/mt on average from last week.
