Activity in the import billet market in Southeast Asia has improved this week with more buyers showing interest in purchases, understanding that there will be no rollback in prices in the near term. A few deals at higher levels have been confirmed, but some buyers are still resisting and keeping their bids stable.
A deal for 5SP billet has been reported at $514/mt CFR to the Philippines, which is up from sales at slightly below $500/mt CFR in late April. Some market sources said they believe this was for 130mm billet, which usually has an extra of $3-5/mt compared to 150 mm. Last week, most offers for 5SP 150mm billet were at $505-510/mt CFR, so a deal indicates that the increase has finally been accepted by some buyers. “They [buyers in the Philippines] were bidding at $500/mt CFR, so above $510/mt CFR seems high,” an Asian trader said, adding, “The US-China meeting is somehow adding optimism.”
Another deal for Chinese 3SP billet has been heard at $507/mt CFR, also to the Philippines, though most other buyers in Southeast Asia, from Thailand and Indonesia, are trying to push for $500/mt CFR. “The prevailing offers for 3SP 150 mm billet are at $505/mt CFR for June-early July shipment. We are trying to find $500/mt CFR, but fail to get it,” a Bangkok-based source said.
The Chinese billet reference price is stable today at $485-490/mt FOB since, after the decline in futures prices yesterday, May 13, the market has recovered slightly. “In general, the supply side has not changed and consumption is better, so the market is stable... The export market is the same as before, while there are fewer billet offers available,” a Chinese trader noted.
The SteelOrbis reference price for import billet in Southeast Asia has settled at $505-510/mt CFR, with the lower end of the range adding $7/mt over the past week.
