The activity in the Southeast Asian import billet market has been close to zero this week as after rise in offers last week, prices have inched up further. As a result, the gap between offers and bids has increased to $15-20/mt. Trading has been seen mainly from the traders, which were buying from mills to cover short positions.
In the Philippines, offers for 5SP billet have been reported at $470-475/mt CFR, up by $5/mt over the week. But the latest deal was heard to be done only early last week at around $460-465/mt CFR. Market sources said that since offers increased, buyers have not been in a mood to continue purchases as “no one knows if trend will settle with the current low demand”, a trader said.
In Thailand, the latest offers for 3SP billet have been at as high as $460-470/mt CFR, moving up by $5-10/mt from last week. “There were no deals for billet. Thai buyers will not pay anything higher than $440/mt CIF except Tata,” a local trader said, adding that with the current local rebar price at THB 16,000-16,500/mt ex-works, the level of $440/mt CFR for billets would be the maximum possible for producers.
In Indonesia, the latest deal was done a week ago at near $450/mt CFR, though there has been no confirmation for this by the time of publication. Now, all offers are starting from $460/mt CFR, a few local sources said.
The SteelOrbis reference price for import billet in SE Asia has increased by $5/mt over the week to $460-470/mt CFR.