Offer prices for import billet in SE Asian import market have increased over the past week, following rises in China. But most buyers have been ignoring higher levels as they have already booked at previous lower levels, and they are looking for cheaper alternatives like Iran or Russia.
The latest offers for Chinese 5SP billet have been coming at $455/mt CFR Manila, while the previous contract was done at this destination at $438/mt CFR and offers for 5SP were at $445/mt CFR late last week. “Mills [from China] are hesitant to give prices before hearing the bids. So, traders are coming forward with prices. But importers still want $435-445 CFR against the lowest $430/mt FOB seen in the market,” a Manila-based source said.
As for 3SP billet offers, most SE Asian buyers have been receiving them at $450-455/mt CFR and the lowest level was heard at $447/mt CFR for this grade. But again, “no need to buy, some traders want above $460/mt CFR, but this is not a real market, just wishful thinking,” a trader in SE Asia said.
At the same time, there has been a rumor that Iranian billet has changed hands at $443/mt CFR in SE Asia. There has been no confirmation by the time of publication with some sources sayinh that for large importers this price for sanctioned material is still high, but some agree that it is reasonable compared to latest Chinese offers.
Indications for Russian billet in Taiwan have been at $440-445/mt CFR this week, up from the workable level at $435/mt CFR a week ago.
The SteelOrbis reference price for import billet in SE Asia has been settled at $447-455/mt CFR versus $438-445/mt CFR last week.
