Sentiment in Southeast Asia’s import billet market has remained bearish this week even though aggressive position offers from traders have been absent due to the holidays in China and despite slightly better expectations for the market development in May.
An offer for 130 mm 5SP billet to the Philippines from a large Russian mill has been reported at $525/mt CFR Manila this week, down from $530-535/mt CFR available from the same supplier a week ago. “They try to sell while China is out,” a Manila-based source said.
Last week, Chinese traders were actively offering at $525-535/mt CFR in Southeast Asia seeing the weakness in China. However, this week “the aggressive short offers are no longer there,” a Singapore-based trader said, adding that, apart from the holidays, the production cuts in China which started last week signal a possible stabilization of prices.
“The market is very quiet now. All are waiting for China’s return,” an international trader said. Offers for billet from the ASEAN region have been reported at $550/mt CFR and above, for long positions. Ex-ASEAN producers have not released new export prices yet.
Offers for ex-Iran billet from traders have been at $530/mt CFR Thailand this week, down by $10/mt from the indicative level a week ago.
The SteelOrbis reference price for imported billet in Southeast Asia has remained at $525-540/mt CFR so far.
