The SE Asian import billet market has obviously turned negative this week as, even though the decline in offers has been gradual, most buyers expect a further drop in the near future. The bearish local market in China has been one of the major reasons for this.
In the Philippines, offers for 5SP 150 mm billet have been heard at $500-502/mt CFR this week, down from $505-510/mt CFR a week ago. “$502/mt CFR [an offer seen in the middle of the week] is still high. Prices have been weak for some days and sellers can give bigger discounts,” a source from Manila said. Most market sources agree that buyers in the Philippines are targeting $490-495/mt CFR for 3SP and 5SP. But “If the trend continues, why stop at $490/mt CFR?” a local source commented.
“China’s billet offers from mills can still be at $480/mt FOB, but traders give around $470-475/mt FOB, so I think most buyers are waiting for a further decline,” a Singapore-based source said.
There has been a drastic fall in activity in other SE Asian countries as well, and no firm negotiations have been heard in Indonesia and Thailand. Some offers from China for 3SP billet have been heard from traders at $495/mt CFR this week; however, even after the decrease from the previous target of $505/mt CFR, this has failed to get any attention from buyers. “Some buyers told us that the price level for next massive purchases in Thailand might need to be close to $470/mt CIF,” a market source commented.
The SteelOrbis reference price for import billet in SE Asia has been settled at $490-502/mt CFR, with the midpoint at $496/mt CFR, down by $11.5/mt over the week.
