Prices for imported billet in Southeast Asia have failed to move either direction as even though negatives have prevailed in the market and the steel production cuts in China have been not enough to provide support to the prices, the resistance between suppliers and buyers has been strong. The trading activity has been limited to a few deals, in East Asia in particular, while SE Asian buyers have been looking for cheaper alternatives.
According to market sources, most offers for 5SP billet of ex-China and ex-ASEAN origins from traders have been at around $518/mt CFR with no deals reported this week and one contract for ex-ASEAN material came to light signed at near $520/mt CFR last week at “restocking need” basis. “The market is waiting as futures are down again this afternoon,” a Manila-based source said. Most bids from the Philippines have been reported at $510/mt CFR or below, but “$510/mt is still a dream for the buyers [for 130 mm 5SP billet] right now. Only the Russians can do this price and maybe Japan,” a trader said.
There has been also information about a sale for ex-Indonesia billet in the local market at $515/mt CFR, which, however, could not be confirmed by the time of publication. The lowest offers for ex-Indonesia and ex-Malaysia billets to Thailand have been reported in the range of $510-525/mt CFR with no new deals so far. “We were expecting to see Iran billet at below $500/mt CFR, but nothing confirmed at such low levels for now,” a source said.
A deal for ex-China billet to East Asia, Taiwan in particular, has been done at $508/mt CFR, which is slightly below the previous offers from Russia and Asia at $510-515/mt CFR in the middle of the month, but slightly higher than bids reported at $505/mt CFR max last week. This deal price translates to around $490-493/mt FOB China, however, by Thursday ex-China 3SP reference price has increased to $500-510/mt FOB.
The SteelOrbis reference price for imported 3SP/5SP billet has been at $510-520/mt CFR this week, stable over the past two weeks.