Billet prices in Southeast Asia are under pressure as there have been a number of position cargoes offered by traders. Rebound in demand and prices will be postponed in Asia, most market sources believe.
The latest deals for small tonnages of ex-Vietnam billet have been at $420/mt CFR Manila, SteelOrbis has been informed. Sellers have been steel offering Southeast Asian origin billet at about $420-425/mt CFR as to ship a full cargo they need to sell at least 20,000 mt, while there have been reports of sales for up to 5,000 mt. Material offered at such prices is from the contracts canceled by China, sources said. As SteelOrbis reported earlier, there have been up to 100,000 mt of position billet cargoes offered in Southeast Asia, mainly for Southeast Asian origin material, for February shipment.
Offers for ex-Russia billet have been heard at $415-420/mt CFR to the Philippines from last week. However, insiders have confirmed that this was a position cargo from a trader. There have been no reports that the level of $415/mt CFR was the workable level for major sellers in the market. Most offers from mills are still at $425/mt CFR at the lowest, sources said. There was one deal signed early this week at $425/mt CFR to the Philippines for ex- Far East Russia billet. “Given that scrap is bouncing a little, I think most mills are holding back slightly,” a major Asian trader said.
The SteelOrbis reference price for import billet in Southeast Asia has been lowered by $5/mt over the past week to $420-425/mt CFR, taking into account recent deals to the Philippines. There are cautiously positive sentiments in the market, but most market sources think that in the near future prices will remain under pressure.