Billet sales in Southeast Asia have revived in early January following the price declines triggered by the weak fundamentals in China. Most of the deals have been for Chinese origin billets. ASEAN mills have had to cut prices as well, but they are still less competitive, at least in the Asian region.
A sale of 15,000 mt of ex-China 5SP billet was done at $450/mt CFR Manila for February shipment early this week, while in late December most offers for 5SP were at $460-465/mt CFR. Moreover, according to market sources, two more deals, also for 5SP Chinese billet, have been done just recently at $445/mt CFR to the Philippines and Indonesia. “China’s price is the best now amid weak demand [locally] and the depreciation [of the Chinese currency],” a Singapore-based source said. The latest offers for March shipment 5SP billet were at $450-455/mt CFR to the Philippines.
There have been no reports about sales of 3SP billet lately, with offers at $445/mt CFR for this grade. Thai buyers are looking for $435-440/mt CFR. Apart from Chinese billet, Russian origin billet can also be competitive in the Asian region. Though Russian sellers have not been active recently due to the holidays, at least one deal was rumored to Thailand by the leading Far East Russian mill at $430/mt CFR, which is $5/mt below its previous sales level to Taiwan and $10/mt below the deal done to Thailand in late December.
Also, a contract for 4SP 130 mm billet has been signed with a Thai buyer for open origin billet for February-March shipment at $453/mt CFR. The price was high due to the size and also the manganese content of the material, which was not to exceed 0.6 percent.
The SteelOrbis reference price for import billet in Southeast Asia slipped to $435-455/mt CFR, dropping by $15/mt since late December.
At the same time, the leading Indonesian mill has reduced its billet price to $435/mt FOB early this week, from the previous offer at $437/mt FOB, and a deal has been rumored at $430/mt FOB for March shipment. This has been widely discussed in the market, but the producer has denied it. “Dexin’s $430/mt FOB is too high for Asia. Traders can take positions from ASEAN mills for other markets only,” an Asian source said. Also, it is heard that Dexin has sold slab at $435/mt FOB for February shipment.