Demand for imported billets has not improved in Southeast Asia during the past week, while prices have declined further. Lower long steel production in the region following some mills' closures and sufficient stocks have kept the market quiet.
Offers for ex-CIS and ex-India billet have been heard at $370-375/mt CFR in the Philippines, Indonesia and Thailand, $10/mt below the reference price last week. Some rare bids for small tonnages from Asian traders have been heard at $360-365/mt CFR, but no deals have been done.
Trading in Manila, which traditionally reflects the situation in the whole market, has still been stuck due to high inventories at ports and financial issues. “Inventories are not moving. Just this March about 400,000 mt of steel were shipped to Manila Port, most of it of course is billet,” a Manila-based trader said. Since the lockdown declared in Manila and the whole of Luzon Island, the inventories have been moving mainly at plants outside this area. However, “some other local governments or provinces imposed their own lockdowns,” another trader said, mentioning the closing borders with Cebu city.
There has been information in the market that SteelAsia Manufacturing is preparing to restart its facilities in Luzon as the lockdown has been scheduled to end on April 14. “However, now our government is considering a two-month extension of the lockdown,” a Filipino source said.
Demand from Indonesia and Thailand has also been extremely low with a few buyers confirming to SteelOrbis that they have been not giving any firm bids this week.
Regional billet suppliers have been giving uncompetitive prices or have been absent from the market recently. The producer from Vietnam has been heard offering at $370-375/mt FOB, while Indonesia’s Dexin Steel has been not giving any fresh indications in the export market. At the same time, “with our rupiah currency weakening, it will be difficult for the seller to offer in the local market,” an Indonesian source said.