Traders’ aggressive offers, slack demand and the bearish outlook have continued to put pressure on import billet prices in Southeast Asia. ASEAN-based mills have also cut prices, though not by significant margins.
Offers for 5SP billet from traders for open origins have started to come at $525-530/mt CFR, around $5/mt lower than heard on Monday and Tuesday. “These are all for short positions, and it would be safe to say that the market is almost dead,” a trader said regarding demand.
After Chinese FOB prices came down to $520-530/mt FOB early this week, ASEAN mills have also decided to cut prices. The leading Indonesian mill has been officially offering at $540/mt FOB, $10/mt below the previous level, but market sources said that it is possible to get $530/mt FOB from Indonesia or Malaysia under negotiations. “I don’t think they are targeting Asia. There is no chance. But for Latin America or East Africa they may be competitive,” a source said.
The SteelOrbis reference price for imported billet in Southeast Asia has settled at $525-540/mt CFR, with the midpoint at $532.5/mt CFR, down by $7.5/mt from the level reported early this week and down by $27.5/mt over the past week.