The square billet market in Asia remains rather positive and deal prices have continued to climb even despite the previous resistance from buyers. Since late last week, the workable price level for billet has increased by $20-25/mt on average in a deal for 30,000 mt closed to the Philippines from Russia within $565-570/mt CFR, as SteelOrbis has learned. The supplier’s new offer to the region has been set at $580/mt CFR. The previous deal for the same origin billet was closed last week to Taiwan at $555/mt CFR. The latest offers from Iran have been reported at $550/mt CFR Thailand, with no takers.
Market players mainly expect billet pricing in Asia to remain strong despite a certain slowdown in China, as there is a combination of factors supporting the positive trend for now. “Mills are trying to suppress their offers in order to create a feeling of tight supply in the market. This is partly a reaction to the vaccine. Scrap collection is really hard during winter, making the price go up. The price may still be strong,” a Manila-based source told SteelOrbis.