Prices for import billet in Southeast Asia have been rather stable over the past week as demand has been limited, but stability has settled in China and there has been no aggressive offering from most sellers. The only exception has been a new sale rumored from Iran at a low level even despite the current logistical risks.
In particular, a contract for Iranian material has been heard at around $460-465/mt CFR Thailand. This price level is below the lowest offers heard last week at $470/mt CFR and higher. However, according to market sources, the billet booked recently will be shipped only in September and both buyers and the seller “are betting that the Strait of Hormuz will be cleared by then,” a trading source said. But a few sources in Thailand have said that most buyers assess buying from Iran as being too risky, especially for ready cargoes. “But the Iranian price is setting the market here - no one will pay above $460-465/mt CFR,” a Bangkok-based source said.
The lowest offers for both 5SP and 3SP billet from China have been at $480-485/mt CFR in Southeast Asia. “I do not see even below $485/mt CFR for 3SP, but this price is unreasonable,” a market source commented. Most buyers in the Philippines assess the workable prices for 5SP at only $470-475/mt CFR.
The SteelOrbis reference price for import billet in Southeast Asia (excluding sanctioned Iranian and Russian materials) has settled at $470-485/mt CFR, down by $2.5/mt on average over the week.
