Though most Asian billet exporters have still been bullish this week, trading activity in Southeast Asia has faded away and buyers expect prices to stabilize at previous levels.
Most Chinese 150mm 5SP billet offers have been reported at $485-490/mt CFR Manila with one importer in the Philippines saying that he feels the market is entering a plateau. The previous deals for this grade were done at $481-483/mt CFR to the Philippines last week, while $485/mt CFR is said to be the highest tradable level this week, but the price level is said to be nominal without firm bids. Earlier this week, some traders voiced offers at as high as $490-495/mt CFR, seeing rises in the Chinese market. Nevertheless, a further price increase in Southeast Asia is questionable as most big buyers have already restocked and rising freight prevents prices from recording a bigger increase. “The markets are largely positive mainly due to supply disruptions as opposed to a demand boost… But I haven’t heard much since deals at $481-483/mt CFR last week,” a Singapore-based trader said.
As for 150 mm 3SP billets, Chinese traders were targeting $485/mt CFR or above early this week, though with zero response from buyers. In addition to sales of 3SP at $475-478/mt CFR to Thailand last week, a deal for vanadium-added Chinese material was done at $490/mt CFR. After the decline in futures prices seen in China on Thursday, March 19, a few offers for 3SP billet have been reported at $475-477/mt CFR Indonesia, signaling a stabilization compared to last week.
Higher offers from the Indonesian mill (at $490/mt FOB) have been ignored by the Asian market. “I think Dexin hiked up its price so much in anticipation of demand from Saudi Arabia,” a trader commented.
The SteelOrbis reference price for import billet in Southeast Asia has settled at $475-490/mt CFR, inching up by $2.5/mt on average over the past week amid higher offers from some suppliers.