Southeast Asia’s import billet market has remained weak as trading has been close to zero after some Asian mills attempted to increase prices or held them stable at relatively high levels. More or less active negotiations have been seen for sanctioned billets, ex-Iran billet in particular, amid more attractive prices.
Most offers for ex-Asia 5SP billets have been heard to the Philippines at $460-470/mt CFR and “there were no new deals after $455/mt CFR [for Asian 5SP reported last week]. Even offers are scarce now,” a Manila-based source said. After last week’s rise in offers, negotiations have almost halted and many Southeast Asian importers do not believe that the recent rumors about production cuts in China will really support the fundamentals in the short term. “I am not sure China will cut production just to increase the price. They have to make fundamental decisions which are not seen,” one of the Southeast Asian re-rollers said.
In Thailand and Indonesia, ex-ASEAN and ex-China 3SP offers have been at $460/mt CFR, though some +/- $5/mt offers have also been seen in the market. But active negotiations have been held in both countries only for ex-Iran billet. “Buyers wanted to test where the bottom is, bidding at $440/mt CFR, prior to making any deal, but it is really the lowest in the market already,” a Bangkok-based source said, adding that offers for ex-Iran 150 mm 3 SP billets have been at $445-450/mt CFR in Thailand.
There has also been talk that ex-Iran 5SP billets have been offered to Indonesia at $450/mt CFR and around $445-450/mt CFR will be fixed shortly or will already have been done by some source.
The latest ex-Russia sales to Taiwan were reported at $449-450/mt CFR last week, but this week the main suppliers have been less active.
The SteelOrbis reference price for import billet in Southeast Asia has inched down by $2.5/mt on average over the past week to $455-460/mt CFR.
