Though futures prices in China have posted an increase today, January 29 and some sellers of Chinese billet in Southeast Asia have been targeting higher levels, most buyers do not see reasons for an upward price trend. Some premiums are still seen for higher grades or rare sizes.
In the Philippines, the lowest offers for 150 mm 5SP billet are at $455-460/mt CFR Manila, up slightly from $455/mt CFR last week. Offers on FOB basis from most Chinese exporters are at $440/mt FOB or higher, and freight is around $18-20/mt. Some traders are still giving stable offers to buyers as they do not view the improvements of sentiments in China as a sustainable trend, but some are asking not below $460/mt CFR. Offers for 130 mm 5SP, which are more rare and more popular in the Philippines, have been reported at $462-465/mt CFR at the lowest.
In Indonesia and Thailand, 150 mm 3SP billet prices from China have been at $455-460/mt CFR. Some sellers have been asking for up to $465/mt CFR, but importers still do not see the tradable level being above $450-455/mt CFR, and only if someone needs material urgently.
In Taiwan, after some rebar producers purchased billet from Russia’s Far East region at $440-445/mt CFR for April shipment, no cheap options have been available and most Chinese billet offers are standing at $460/mt CFR. However, there has been some demand for vanadium-added billet in Taiwan, which has been offered from China at $485/mt CFR.
The SteelOrbis reference price for import billet in Southeast Asia stands at $455-460/mt CFR, almost unchanged from last week’s $455-459/mt CFR.