Offers for imported billet in Southeast Asia have increased further this week even despite the negative signs coming from China. Sellers are confident that buyers in the region will have to pay above $700/mt CFR to secure material in the coming weeks.
Offers from the majority of billet exporters have been reported to the Philippines at $715-725/mt CFR, up from $700-715/mt CFR seen last week. Late last week, a deal for 20,000 mt of ex-Indonesia 5SP 150 mm billet was closed at $695/mt CFR to the Philippines, while the trader was in negotiations for 3SP billet at $690/mt CFR. “But this is improbable now,” a local trader said. “Sellers won't accept low prices now. They see that this temporary drop [in China] is not a permanent threat to the market,” a source in Manila said.
“$700/mt CFR will open the table for discussions. But offers are higher now,” another source from the Philippines said.
The SteelOrbis reference price for imported billet in SE Asia has reached $690-700/mt CFR this week, up by $10/mt from last week.
Offers for ex-Iran billet were at $650-655/mt CFR to Thailand and Indonesia early this week. Buyers from Thailand were ready to accept this price, while the previous deal was at $640/mt CFR. But by Thursday, traders have increased offers to $660-670/mt CFR.