The situation in the Southeast Asian import billet market has worsened over the past week, even though China has come back from the holiday in a better mood than expected. Most buyers in the Philippines have been not interested in purchases of billet, having some stocks and seeing continuous slowdown of the rebar market.
Most offers for EAF/BOF billet from Russia and Vietnam have been reported at $700-715/mt CFR Manila today, this is slightly below the last week's offers range of $705-720/mt CFR. But in any case, at least one offer heard at $695/mt CFR early this week has not been available any more as the supplier has increased it to $700/mt CFR after China’s resumption of demand. “But I really can't see any Manila buyers paying that much except from SteelAsia,” a trader said.
“It is possible to buy at $700-708/mt CFR, but no demand,” a Manila-based buyer said.
Offers for ex-India IF billet have been reported at $685-690/mt CFR in the Philippines, ex-Thailand IF material has been available at $690/mt CFR and ex-Vietnam IF billet price has been at $690-700/mt CFR. But even taking into account more attractive IF billet tags, no new deals have been seen over the past week.
In Thailand and Indonesia, ex-Iran billets through traders have been offered at $700/mt CFR and though one contract was rumored at this level a week ago, it could not be confirmed by the time of publication. “The billet payable price for rebar production won't be higher than $660/mt CFR. Any deal at a higher level will be for a very special grade or for making wire rod,” a trader from Bangkok said. “Import billet price here is $700/mt CFR, not higher,” an Indonesian importer said.
The SteelOrbis reference price for imported billet (excluding IF) in Southeast Asia has been settled at $700/mt CFR versus $700-710/mt CFR last week.