The demand for imported billet which was seen in Southeast Asia at least for non-standard and higher grade materials last week has faded away. Prices have remained almost stable and, though suppliers have been trying to push prices up or at least avoid discounts, sentiment has not been very promising, also impacted by the recent drop in China.
Offers for the most popular 125-130 mm billet in the Philippines have been still at around $710-720/mt CFR and no new deals have been signed over this week. “The market is very unpredictable because of what is happening to China. Domestically speaking, the prices offered are not acceptable due to local prices [for rebar]. As regards high grade billet, there's still activity, but for the low grade it's almost zero,” a Manila-based trader said. For 5SP billet the tradable level has been assessed at $705-710/mt CFR Manila, in line with last week, while for 3SP billet buyers’ price idea is lower, at $700/mt CFR or below, according to market sources.
“Billet sellers are trying to increase prices due to the rising cost of inputs. But the response from buyers is tepid,” a re-roller from the Philippines said. Rapidly increasing scrap prices globally and still high coal prices have been among the main supportive factors for billet prices. However, “sentiments are turning and sellers will need to reduce prices or traders holding positions will liquidate them at $700/mt CFR max,” another Asian trader said.
Suppliers, offering 150 mm billet, have also been reluctant to cut prices much, with most offers standing at $720/mt CFR and above in Southeast Asia. “[The workable price in Indonesia] should be lower to $700/mt CFR, but no one is offering that low,” an importer from Indonesia said.
The lowest offers have been reported for ex-Iran billet and IF billet from India at $700-705/mt CFR Thailand. Traders want to make some sales at gradually higher prices, but nothing as for now,” a Bangkok-based source said.
The SteelOrbis reference price for imported billet (excluding IF and ex-Iran billet) in Southeast Asia has been unchanged from last week at $700-710/mt CFR.