Southeast Asia’s import and export billet markets have continued to move on an upward trend, following a third day of rises in futures prices in China.
An Indonesian mill has started sales for January shipment billets with a deal confirmed by the mill and a number of traders at $450/mt FOB in the middle of this week, while the previous contracts for December shipment were at $442-445/mt FOB. Some market sources said the mill’s deal was for 50,000 mt in a long position, but the mill has denied confirming the volume and some traders believe that the real volume was smaller. “Our billet LSD [latest shipment date] now is January 2025, while for wire rod and slabs it is still December 2024,” a representative of the mill said.
The ex-China billet reference price has risen for the third day in a row, to $450-460/mt FOB, up by $25/mt from Monday. “I would say it is hard to get an offer below $460/mt FOB, so export sales will close. I think the market will remain positive after the holidays too,” a Chinese trader said. The government stimuli for the property market announced on Tuesday have significantly boosted sentiments in the steel market.
In such conditions, offers for 5SP billets from traders to the Philippines have increased to a minimum of $470-475/mt CFR, up by $10/mt over the past week. “Buyers are absent now. Mills such as Dexin will be relaxed by the end of the year, but buyers who failed to buy when prices were at $460/mt CFR [Manila] will be in trouble,” a local trader said.
A deal for ex-China 3SP was reported at $450/mt CFR to Thailand last week. But this week offers from traders to both Indonesia and Thailand have increased to $465-470/mt CFR.
The SteelOrbis reference price for import billet in Southeast Asia has settled at $460-470/mt CFR, up by $6.5/mt over the past week.