Import billet prices in Southeast Asia have decreased slightly over the week. A Russian supplier agreed to sell at $453-455/mt CFR Philippines, while the transaction price was not lower than $455/mt CFR last week, market sources told SteelOrbis.
Offer price levels for major Southeast Asian countries (Philippines, Indonesia, and Thailand) were at $450-457/mt CFR, about $3-5/mt below last week. The lowest end of the range corresponds to offers to Thailand from Russia. “Russia can still offer the lowest price in the market so if somebody needs to purchase he will purchase from Russia,” a Filipino customer told SteelOrbis.
The fresh offer price for Indian billet from a BF-based steel producer was heard at $457/mt CFR this week. Customers from the Philippines are bidding at $450/mt CFR mostly as the local rebar market is slow at the moment. Bids from other countries are even $5-10/mt lower.
According to the market sources, China is still in the import billet market after the first import purchases were reported in July, when iron ore prices reached record high levels. “China is reportedly buying Russian and Middle Eastern billets at $455/mt CFR,” a Southeast Asian trader said.
Billets made via induction furnaces (IF) originating from India and Vietnam have been available at $455/mt CFR, which is far from attracting buyers’ interest. Vietnamese suppliers of non-IF semis have also been uncompetitive, as their prices were announced at $465-470/mt CFR.
Weak seasonal demand in Southeast Asia can lead to some further slight price decrease in the coming week.