Though overall trading activity has been weak in the Southeast Asian billet market this week, some deals are reported to have been done at lower prices.
A rumour about a contract for 20,000 mt of ex-Indonesia BF billet has been widely discussed in the market at $585/mt CFR the Philippines or slightly above, though it has not been finally confirmed by the time of publication. In addition, ex-Vietnam billet has been traded at $585/mt CFR. A contract for a small volume of Japanese 5SP billet has been signed at $580/mt CFR. All these deals are for EAF or BOF billet. “Nowadays there are lots of offers, but not many closings. Demand for billets remains inelastic,” a re-roller from the Philippines said.
Also, IF billet has been sold to the Philippines at $570/mt CFR with the low price in the contract due to the very limited number of buyers for IF billet. Sellers from Vietnam and Thailand have been offering IF billet at this price level, while small Indian IF-based producers have also been ready to give $565-570/mt CFR SE Asia, “with bids being invited at $560/mt CFR,” a trading source said.
A tender of Indian state-owned producer RINL for around 30,000 mt of 150 mm billet has reportedly been closed at $532/mt FOB this week, with the price considered to be very low by market sources, taking into account the target level of not below $560/mt FOB. This signals weak demand in Asia, according to sources. The cargo is going to be sold to Sri Lanka, insiders told SteelOrbis.
There have been no deals reported for Russian billet so far. The lowest offer has been heard at $578/mt CFR Manila from a source offering billet from Russia’s Far East region. Other offers for both ex-Russia’s Far East and Black Sea CIS material have been mainly at $580-590/mt CFR.
The reference price for imported billet in SE Asia has been lowered slightly again, to $580-585/mt CFR, versus $580-590/mt CFR, reported earlier this week.