Prices for import billet in Southeast Asia have fallen further this week, even though major suppliers have been refusing to provide discounts and some revival of trading has been seen in China. Weak demand and bids at below $700/mt have been the major factors which have depressed the market.
Recent offers for ex-ASEAN and ex-Russia EAF/BOF billet have been at $710-715/mt CFR and the lowest possible level from exporters has been at $705/mt CFR. But while China has been accepting $705-710/mt CFR in recent deals, most customers in the Philippines have been assessing the market price level at only $680-690/mt CFR. “The offers are the same as in China, but no taker here,” a Manila-based trader said.
A rumour has been heard that one deal for 5SP IF billet from India has been signed at $680/mt CFR this week, but this could not be confirmed by the time of publication. Some sources believe that the price level for IF billet should be lower in deals as offers for 3SP IF billet have been reported at $670/mt CFR and buyers have said that they could get some additional discounts.
In other Southeast Asian countries, demand for import billet has been even lower than in the Philippines. Some traders in Thailand said that the tradable level is hardly above $650/mt CFR now.
The SteelOrbis reference price for imported billet (excluding IF) in Southeast Asia has declined by another $10-20/mt over the past week to $690/mt CFR.