Higher prices in Southeast Asia’s import billet market have failed to sustain in February as major buyers have all been insisting on lower prices, and so the bid-offer gap has been too high for any deals to emerge. Even trading for sanctioned Iranian and Russian billet has halted this week due to high prices.
Rumors about sales of ex-China 3SP billet to the Philippines at $460/mt CFR have been strongly denied by most market sources, with local importers saying that, even for 5SP, this price is unworkable. A deal at such a level has been possible only to Sri Lanka, a few traders commented. At the same time, the current offers for 5SP billet of Asian origins for late March shipment have been reported at $455-465/mt CFR Manila, moving down from $460-470/mt CFR last week. “I don’t think that buyers will pay above $450-455/mt CFR for 5SP,” a Singapore-based trader said.
Offers for 3SP billets have been heard at $455/mt CFR Thailand and Indonesia with small discounts possible. This level corresponds to ex-China and ex-Indonesia offers, so the gap between Asian and sanctioned billet in Southeast Asia has shrunk to a minimum. For instance, ex-Iran offers to Indonesia are still heard at $450/mt CFR. “No one here will pay such prices. Here, the buyers’ target is at $440/mt CFR,” a Bangkok-based source said.
A Russian mill has increased billet offers from the Far East ports of Russia to $458/mt CFR Taiwan, up by $10/mt from the deal reported last week. Also, to Thailand ex-Russia offers are at $455/mt CFR.
The SteelOrbis reference price for import billet in Southeast Asia (excluding sanctioned material) has settled at $450-455/mt CFR, down by $5-10/mt over the past week.
