Though overall price levels in the Southeast Asian billet market have increased compared to the previous week, buyers have been mainly bearish. They believe that suppliers will not be able to maintain their prices, seeing that the overall number of offers has been going up since China has stopped active imports.
Offers for ex-Russia 125-130 mm billets to the Philippines have been reported at $710-715/mt CFR recently, while major Southeast Asian suppliers have been offering 150 mm billets at $730-740/mt CFR.
Since China has been staying away from buying with prices dropping locally, major suppliers have been active in offering cargoes to Southeast Asia. A cargo of 30,000 mt of ex-India billet and 20,000 mt of an ex-Vietnam cargo (both 150 mm) have been offered to the Philippines and Indonesia. But in the Philippines there is a limited number of buyers for 150 mm billet and most of them are “not in a rush to book.”
Only one deal has been reported to the Philippines over the past week. A cargo of 20,000 mt of ex-Russia 100 mm billet has been sold at $720/mt CFR.
At the same time, the tradable level for the most popular billet size - 125-130 mm in the Philippines - has been below $710/mt CFR, most sources believe. “Filipino buyers are not very active. I'm not hearing bids above $700/mt CFR Manila. The gap between offers and bids is too wide,” an international trader said. “$710/mt CFR is the cheapest you can get as of now, but there is a lack of takers,” a Manila-based source said.
Some lower prices have been heard from traders offering ex-Iran billet. In particular, offers to Thailand have been heard at $690-695/mt CFR this week, versus $700/mt CFR a week ago. “Mills haven't reduced their offer prices. It seems the lower offer prices are quoted by traders who have cargo in hand,” a local source said.
The SteelOrbis reference price for imported billet (excluding IF and ex-Iran billet) in Southeast Asia has been at $700-710/mt CFR, which is slightly down by $2.5/mt on average from early this week, but up by $10-15/mt from last week.