Offer prices for import billet in Southeast Asia have increased after the New Year holidays, following gains in China amid the loose monetary policy expected in 2026. But most buyers have been refusing to accept higher levels, not believing that the uptrend is sustainable. Moreover, buyers that have ex-China orders that should arrive in January do not expect any big delays in shipments even though there have been rumors of longer-than-expected times taken to receive export licenses.
In the Philippines, most offers for 5SP billet have been at $460-465/mt CFR, up from $455/mt CFR mainly in late December. “The increase is artificial, so it should be easy to play with offers and to find 150 mm [billet] still below $460/mt CFR,” a Manila-based source said.
At least five trading sources involved in billet trading in Southeast Asia have said that they expect shipments as per schedule even though some exporters in China are still struggling to receive the export licenses under the new system effective from January 1, 2026. “It seems that low carbon wire rod and coated steel sheet in coils will be affected the most [in SE Asia] as those businesses were more non-VAT, and it seems sellers will renegotiate on prices,” a trader commented.
In Thailand and Indonesia, offers for 3SP 150 mm billet have increased to $460/mt CFR, but some big Chinese traders have even been targeting $470/mt CFR as “they see strong a local market in China,” a Bangkok-based source said. “We have billet booked from China and it will arrive in time in January. We are not in a hurry to buy for March,” a source in Indonesia said.
The SteelOrbis reference price for import billet in Southeast Asia has increased to $460/mt CFR, up by $7.5/mt on average from late last week.
