Major billet exporters to Southeast Asia have started to increase offers this week, seeing revived activity last week. But most buyers have not been ready to accept a hike, still seeing negative signals from China and waiting for prices to come back to the declining trend.
Most offers from major mills or trading, offering mainly 5SP billet originating from Southeast Asia, India and the CIS for January-February shipments, are at $660/mt CFR Manila, while some Vietnamese EAF producers have been offering even at $680/mt CFR.
No new deals have been reported to the Philippines recently after two major mills based in Russia’s Far East region sold sizable lots, up to 95,000 mt in total, according to some estimations, at $640-650/mt CFR. “There are no deals above $650/mt CFR Manila, though offers have moved up,” a Singapore-based trader said. One of the abovementioned Russian sellers has been offering at $660/mt CFR, but it is ready to accept counteroffers at $655/mt CFR.
“Mills do not like to cut prices anymore. And the distressed lots have more or less been sold off in the last three weeks. However, buying is not so energetic,” a re-roller from the Philippines said, explaining the relatively stable tradable prices in the country.
Indonesian producer Dexin Steel has been asking for $660/mt CFR in Southeast Asia and Taiwan, but customers in the latter destination are seeking closer to $640/mt CFR, in line with the latest deals signed for ex-CIS material last week.
In Indonesia and Thailand, buyers have not been ready to accept any price increase either. Last week, ex-Iran billet cargo from a trader changed hands at $620/mt CFR, but the details are not clear for now. Sellers of all other origins have been asking for much higher prices and they have not had any serious negotiations. “We haven't got any offers below $650/mt CFR from overseas,” an Indonesian billet importer said. One of the sources believes that the tradable level in Indonesia and Thailand would hardly be above $620/mt CFR.
The SteelOrbis reference price for imported billet in Southeast Asia has remained at last week’s level of $640-650/mt CFR.