Billet prices in Southeast Asia’s import market have fallen to the lowest level seen this year due to the downtrend in China. Buyers have been cautious, waiting for some additional discounts.
Offers for Chinese 5SP billet to the Philippines have been at $445/mt CFR, while some traders have been offering even lower, at $441-442/mt CFR, which is down significantly from the previous deal for at least 30,000 mt done at $450/mt CFR Manila. “Buyers are waiting because of varied reasons. No one is ready to buy in the falling market,” a Manila-based source said.
Also, offers for 3SP billet to Thailand have been at $440/mt CFR, and at least one Indonesian buyer was in negotiations at $435-440/mt CFR for this grade, which is $5/mt below last week. “If the US government really needs to cancel the tariff as the court judged yesterday, then the price should be stable,” a Thai source said.
The ex-China billet reference price has fallen to $415-430/mt FOB, with the midpoint at $422.5/mt FOB. After the drop early this week, the market has stabilized today, May 29. “The US court blocking Trump’s tariffs gave some positive push to the global market today... But the Chinese steel market is still facing the same problems with high production and weak hot season demand. Today, most physical prices gained RMB 10/mt, with better sales volumes,” a Chinese trader said. An ex-Indonesia offer was at $430/mt FOB on Wednesday, corrected down by $5/mt from Monday.
The SteelOrbis reference price for import billet in Southeast Asia stands at $435-445/mt CFR, down $5/mt over the past week.
