Sentiments in Southeast Asia’s import billet market have remained bearish and suppliers have offered additional small discounts to keep selling.
In particular, a few deals for Asian origin 5SP 130 mm billet have been signed at close to $440/mt CFR to the Philippines, which translates to $435/mt CFR for 5SP 150 mm, $5/mt lower compared to the previous deals for 150 mm billets. “There are offers for 5SP at $435/mt CFR for all Asian origins, but there is an extra for 130 mm in Manila, so in general the market has weakened,” a local importer said.
Negotiations for 150 mm 3SP billet, mainly Chinese origin, have been heard in Indonesia and Thailand at $430-435/mt CFR, with a few market sources saying that the tradable level is not above $430/mt CFR. After sizable sales of 5SP billet to Indonesia at $438/mt CFR, the latest price for 3SP has been in line with expectations.
“I can’t see any support for prices [of Asian billets], if iron ore keeps falling. Chinese mills will be able to cut prices,” an Asian trader said.
The SteelOrbis reference price for import billet in Southeast Asia stands at $430-440/mt CFR this week, down by $2.5/mt from last week.
