Limited offers and surging scrap prices have pushed up billet prices in Southeast Asia again and offers have reached $600/mt CFR. The activity in the market has slowed down ahead of holidays.
Offers for ex-Indonesia and ex-Russia BOF billet have been reported at $595-600/mt CFR and negotiations have been ongoing with the major buyer in the Philippines at this level. “Billet offers are coming at $600/mt CFR levels. Input costs like scrap and iron ore are up. I am not so sure how many people have the appetite to keep chasing at billets. One has to be low on inventory to buy at this level,” a re-roller from Manila told SteelOrbis. There have been no offers heard at the lower level. IF billet has been offered at $595/mt CFR to the Philippines.
Last week, the deal prices were reported first at $565/mt CFR and then at $575-580/mt CFR by the end of the week. After that one small volume has changed hands in the Philippines at $585/mt CFR, sources have said. But this level has not been available in the market any more.
“Most Philippines buyers withdrew from the market since China futures crashed the last couple of days,” an Asian trader said.
There was an offer heard from the major trading company from China for Chinese billet at very cheap prices last week – at $550/mt CFR or below, “but no one is taking those,” a source commented.
Offers for ex-Iran billet by traders have been reported at $570/mt CFR earlier this week with no transitions heard.
The SteelOrbis reference price for imported billet in Southeast Asia has been settled at $595-600/mt CFR against $565-575/mt CFR last week.