A number of deals for import billet, mainly Chinese origin, are reported to have been done to Southeast Asia this week, SteelOrbis has learned on Friday, March 13. Customers have accepted price increases due to uncertainty regarding supply, with no cheaper options available from other sources.
A few sales for 5SP 150 mm billet are confirmed to have been done to the Philippines at $481-482/mt CFR, up by $13-14/mt from the previous sales to this destination. This has been the highest sales price in the market, and market sources said that customers in the Philippines have needed to secure cargoes from China, seeing that other countries in the region have been more eager to purchase from China.
At least one lot of Asian 3SP 150 mm billet has been sold to Taiwan at $480/mt CFR. “Evraz told buyers that they will offer after the Chinese New Year holiday, but so far offers have not been coming. So, buyers have had no choice but to purchase from China. Plus, freights are really high. Buyers have to contend with that,” a Singapore-based source said. Iranian offers are absent and shipments are canceled with market participants not believing in the resumption of export trade anytime soon.
Also, a sale to Thailand has been reported at $475-478/mt CFR in the middle of the week for grade equivalent to 3SP 150 mm. Market sources said that new freight rates are at up to $28-30/mt from China to major Southeast Asian ports, meaning that traders need to offer at at least $485/mt CFR in the next round of sales at the lowest at the moment, considering ex-China FOB offers at $455/mt FOB at the lowest. Some Chinese exporters have already increased offers to $460-465/mt FOB today amid higher iron ore prices and better sentiments.
The SteelOrbis reference price for import billet in Southeast Asia has been corrected upward to $478-482/mt CFR this week, with the midpoint adding $15/mt over the past week.
