Though some billet exporters have been trying to push prices up in the Southeast Asian market, most buyers have still been focused on selective buying at below the $700/mt CFR mark.
A deal for 10,000 mt of ex-Vietnam IF billet has been reported at $680/mt CFR Manila this week. There has been an increased number of offers of IF billets in the Philippines, with the majority of suppliers asking for $675-685/mt CFR. “No price increase here,” a local trader said. “Southeast Asian mills continue to offer cheaper prices [not above $700/mt CFR],” a re-roller said. Though prices are stable compared to late last week, in late May the deal price level for IF billet in the Philippines was at $660/mt CFR, signalling that the market has been fluctuating at higher levels lately.
Most offers for BF billet from different countries are at $695-700/mt CFR to the Philippines. A contract for ex-Indonesia BF billet has been rumoured at $700/mt CFR, but this could not be confirmed by the time of publication. Indian BF billets have been available at $695/mt CFR to Southeast Asia. Since Indian cargoes are facing new stricter rules entering China and demand there has been reduced, Southeast Asia has been the only option for sellers now.
No fresh offers for billet from Russia have been heard in Southeast Asia this week. But market sources believe that exporters will return with offers at above $700/mt CFR.
The highest buying indications for import billets in Indonesia and Thailand have been reported at $660-670/mt CFR. Over the past ten days, rebar prices in the local market in Thailand have declined by THB 1,900-2,000/mt ($61-64/mt) due to the slowdown in construction activity.
The SteelOrbis reference price in Southeast Asia, based on deals and the tradable level in the Philippines, has been settled at $680-700/mt CFR, down by $5/mt on average from $690-700/mt CFR late last week.