A few deals at low prices have been disclosed as done to Southeast Asia last week, but this week most offers have been heard at higher levels. Higher offers have been mainly coming on CFR basis and from traders because prices on FOB basis have been stable or even slightly higher, so traders have been more cautious about offering in a short position.
A contract for a sizable lot of ex-China 5SP modified grade billet was widely discussed at $435/mt CFR Manila, while the lowest previous deal price level for 5SP billet in SE Asia was at $438/mt CFR to Indonesia and $440/mt CFR to the Philippines. But most sources polled by SteelOrbis agree that this deal was done last week, and not this week, as rumored initially. “For early last week, this price was right, and this is a very good deal for a buyer,” an Asian trader said, adding that most offers for 5SP billet are at $445/mt CFR or higher this week.
Also, another deal for 125 mm 5SP modified billet has been heard at $440/mt CFR also to the Philippines.
Also, at least one deal for Asian 3SP was heard as done to Thailand last week, but the final price has not been confirmed by the time of publication. Some sources believe it should be at $435/mt CFR or slightly below. This week, most offers for 3SP have been at $440-445/mt CFR in SE Asia.
Market sources believe that the current trend in Asia is still unclear, but lower prices are unlikely to be seen with the current FOB offers. In particular, most offers for Chinese billet have been at $425-430/mt FOB, while ex-Indonesia material is at $427/mt FOB.