Prices for imported billet in Southeast Asia have softened again this week as both mills and traders have been giving discounts, trying to accelerate sales. However, only rare deals have been reported in the market, while most buyers still believe there is room to go down further.
The SteelOrbis reference price for imported billet (3SP and 5SP, ex-EAF or BOF) in Southeast Asia has settled at $510-520/mt CFR, down from $520-525/mt CFR last week.
Offers from traders for 5SP billet to the Philippines have slipped to $520/mt CFR this week, from $520-525/mt CFR last week. But some sources report that traders’ prices for position cargoes have already been voiced at $515/mt CFR or so. “I believe now buyers can get $510-515/mt CFR [in the Philippines], but no sales,” a source from Manila said. “Last week brought rainy days and strong winds. The adverse weather is over for now. But we expect two to three more big typhoons to strike the Philippines before the end of August,” a re-roller said.
There has been a deal signed by a Malaysian IF-based producer to Indonesia for 10,000 mt of 3SP billet at $500/mt CFR last week, though some sources believe that the final price is slightly below this level. “For now, no new deals at below this level, but we are waiting for a decline for Iranian billets,” a source from Indonesia said.
Though there has been a lack of firm offers for ex-Iran billet in Southeast Asia, some sources report that traders have started to collect bids in Thailand at $490/mt CFR. Last week, a deal for ex-Iran billet to Indonesia was at $500/mt CFR, while offers have been mainly at $505/mt CFR. "Local stockists' rebar prices have dropped again to THB 19,200/mt ($542/mt). Also, local scrap prices have declined after a hike in the last one to two weeks. This shows real demand in the local market is still weak. Last week, local billet prices were at THB 17,300/mt or $480/mt CIF import parity," a source from Bangkok said.
Major ASEAN mills are still focusing on distant markets. The last deal from Dexin Steel was reported early this week at $500-505/mt FOB.