Demand for import billet has worsened in Southeast Asia this week as the spread of the coronavirus has raised concerns of a possible lockdown in some Asian countries. At the same time, offered volumes are still high. Only rare deals have been heard in the market and bids have softened further.
A deal for about 40,000 mt of high-manganese billet from the CIS has been closed at $420/mt CFR Manila this week, with the extra for the chemical compositions at least $5/mt, sources from Southeast Asia have told SteelOrbis. Most market participants said that $415/mt CFR has been the real market level in the Philippines, but the main issue has been the cautious attitude of buyers, not the price. There have been only a few firm bids at $410-415/mt CFR Manila recently and one source has reported a deal from Indonesia at this level, but this has not been confirmed by the time of publication.
Offers from Russia, South Korea, and Vietnam have been mostly at $415/mt CFR Manila, with only some still at $420/mt CFR. “There are many suppliers, but the problem is the spread of the coronavirus. Everything is changing fast. We still think about whether to buy or not,” a Manila-based customer said. The number of coronavirus infections in the Philippines increased by three to 52 on March 12.
There have been no billet transactions reported in Thailand or Indonesia, while offers have been at $415/mt CFR from different sources. “Dexin were still [offering] at $410-415/mt CFR, but no demand,” a Singapore-based trader said. Only one stray deal for ex-Iran billet has been heard at $408/mt CFR Thailand, as reported earlier.
The SteelOrbis reference price for imported billet in Southeast Asia has narrowed from $410-420/mt CFR to $410-415/mt CFR this week.
