After the sharp increase in import billet offers early this week, importers from Southeast Asia have been cautious, not hurrying to sign deals at higher levels due to a lack of confidence in the market. More news is expected from China before customers resume purchases.
Offers for BF/EAF 5SP 130 mm billet have been coming at $530-535/mt CFR and up to $540/mt CFR to the Philippines, up by $20/mt since last Friday and by as much as $25-30/mt above the lowest level seen early last week. But no new confirmed deals have been reported to buyers in the Philippines at the current higher level so far. “If someone manages to sell at $530/mt CFR Manila, I would say it is a very good sale,” a local source said. “It is not easy to say now what the tradable level in Southeast Asia is as most offers are at $530-535/mt CFR, while last week on Monday offers were at $500-505/mt CFR. It is a big difference in pricing for buyers to chew,” a Singapore-based trader said. Market sources are waiting for some IF billet sales in the near future at $520-525/mt CFR or so as customers will try to find cheaper options.
The only deal for ex-Indonesia billet has been reported to Taiwan at around $530/mt CFR or a few dollars above this level this week by a trader for July shipment.
Indonesian customers have received offers from their local producer at $535/mt CFR and offers for ex-China billet at $530-533/mt CFR, with no interest in purchases. “No one is ready for prices above $505-510/mt CFR, and we still don’t have Iranian offers which could be lower [than that $530-535/mt CFR prices],” a source said. The last offer level for ex-Iran billet was at $510/mt CFR Thailand with no firm offers this week. The new price indication for ex-Iran billet has been assessed at $520/mt CFR.
“Buyers are still a bit slow, but expectations are that they'll come back if the situation like today stays at least for a week or so,” an international trader said.