Prices for imported billet in the Southeast Asian market have indicated a sharp drop early this week as some regional suppliers, from Indonesia and Vietnam in particular, have voiced much lower prices, expecting a continuation of the downtrend.
The main BF-based Vietnamese mills reportedly sold 30,000 mt of billet to an international trading company at $545/mt FOB last week. The trader is planning to sell this material to Thailand, according to market sources. This level translates to about $560/mt on CFR basis to Southeast Asia. Some traders have said that this lot has not been sold to the final destination yet and that the trader who purchased it initially may change the destination to China, SteelOrbis has learned.
A big Chinese trader has reported an offer of Indonesian billet at $550/mt CFR China, while the same origin billet has been offered to the Philippines at $555/mt CFR or slightly above, sources have said. There have been no responses from Chinese customers and they are expected to place bids at below $545/mt CFR. “There are low offers but no bookings,” a local source in Manila said.
More offers for imported billet are expected to be announced later this week, which will clarify the picture in the Southeast Asian market.
The SteelOrbis’ reference price for imported billet in SE Asia has dropped by $25/mt since late last week to $555-560/mt CFR.