Prices for billets in the Southeast Asian import market have increased this week, despite low trading activity in the region ahead of holidays as suppliers have seen very high raw material prices.
Offers for 5SP EAF/BOF billet have gone up to $538-545/mt CFR Manila, up from the latest deal for such grade at $530/mt CFR and offers at $530-535/mt CFR last week. Offers for BOF 3SP billet, which is less popular in the Philippines, are at $535/mt CFR, more than $10/mt above the previous deal for Indonesian 3SP material last week. “This rise is only because of high raw materials,” a Manila-based source said.
Nevertheless, activity in the market has fallen almost to zero. “The Philippines have been pretty quiet this week, last tradable level is $525-530/mt CFR, no one will agree for above this level. Everybody is waiting for the trend in January,” a Singapore-based trader said.
Also, cheaper position cargos have already been sold out, so traders are offering close to the current mills’ offers. Dexin Steel has cut its offers to $525/mt FOB this week, which translates to $545/mt CFR Manila.
The major Russian mill, shipping from far Eastern ports has increased offers to $530/mt CFR Taiwan for commercial grade billet, up by $5-10/mt from the previously signed deals at this destination.
In addition, today, on December 21, steel and raw material futures in China have rebounded amid “possible steel production control measures to return in Tangshan and banking interest rates cut rumors,” a Chinese trader said. Rebar at Shanghai Futures Exchange has added 1.27 percent over a day.
The SteelOrbis reference price for imported billet in SE Asia has been settled at $530-538/mt CFR versus $523-530/mt CFR last week.
