The sharp drop in raw material prices this week has put pressure on the imported billet market in Southeast Asia. The workable levels for billet from traditional suppliers have slipped by $5-7/mt over the week, coming to $445-450/mt CFR, SteelOrbis has been informed.
However, deals for Malaysian billet have already been concluded at the lower level at the end of the week - at $440-445/mt CFR, sources confirmed. This material had previously been sold to China, but customers cancelled the contracts and so traders had to resell the billets at even lower prices. Most market participants said that other traditional suppliers have not been ready to give such low offers so far this week.
Indian billets have been available at $448-450/mt CFR Southeast Asia, while prices from Russia have not fallen below $450/mt CFR, the lowest deal price level, fixed in a contact to Southeast Asia late last week. “I expect Russian suppliers will reflect the raw material weakness in billet prices next week,” a Bangkok-based buyer said.
A mixed cargo of Iranian billets and slabs was sold by trader at $410-415/mt CFR Thailand, SteelOrbis was informed, $15/mt below the last offer price heard for billets from Iran in Southeast Asia.
It is expected that prices for billets from traditional suppliers will reach $440/mt CFR soon, but are unlikely to break this level in the coming week.
