Prices for imported billet in Southeast Asia were stable in fresh deals disclosed early this week. Even without demand from China, suppliers have managed to increase prices in Southeast Asia over the past few weeks, but they have already reached a peak, sources believe. Nevertheless, limited availability of billet in the market may prevent prices from declining in the near future, even despite some decreases in scrap prices in Asia.
A contract for 130 mm billet was closed to the Philippines from Russia’s Far East at $455/mt CFR for December shipment late last week. Also, a position cargo of 125 mm billet from India, which was purchased from a mill earlier, was sold at $450/mt CFR. A major Chinese trader has sold four small-volume lots to Southeast Asia, also in the range of $450-455/mt CFR.
There has also been information in the market that Indian producer JSPL has sold 40,000 mt of 3SP and 5SP billet to Southeast Asia at $445-455/mt CFR recently, but this information has not been confirmed by the time of publication as sources have kept saying the allocation from India is limited at the moment.
“You cannot find 130 mm billet at $445/mt CFR. Mills already sold out all their allocation to China earlier,” a trading source said. “Offers are prevailing at $450-455/mt CFR Manila,” another source said, adding that market sources are all checking availability at the moment.
SteelOrbis reference prices for imported billet in Southeast Asia have remained at last week’s level of $450-455/mt CFR.
Though sentiment in the Asian market has slightly weakened recently as China remained absent from the import billet market and as scrap prices have started to go down, for now exporters’ positions are good. CIS-based suppliers from the Black Sea region may return to the Asian market in the near future, as prices have almost reached an appropriate level for suppliers - $450-455/mt CFR, which translates to around $410/mt FOB. But for now the allocation in the CIS is also limited due to maintenance at some mills in Ukraine and Russia.
Iranian billet has been offered to Thailand at $445-450/mt CFR recently. Information about a contract at $441/mt CFR has not been confirmed by the time of publication.