Import billet prices in Southeast Asia have remained under pressure over the past week due to lower bids and some traders going short. Nevertheless, major Chinese exporters have been trying to halt the downward trend amid the recent rebounds in futures and iron ore prices.
Major offers for ex-China 5SP billet have been reported at $478-480/mt CFR Manila, though some traders have already voiced only offers above $480/mt CFR. A contract for Indian IF billet has been rumored at $475/mt CFR to the Philippines, but a few market sources shared that they see this as being the lower side in the current market conditions.
In particular, the ex-China billet reference price stands at $450-460/mt FOB, increasing by $2.5/mt on average compared to the previous day. “A mild rebound is seen in China and local prices have increased due to costs again. It is obvious that demand is still slow, but the local market is better in terms of prices,” a Chinese source said.
The lowest price for Chinese 5SP has been heard in a deal done to Indonesia at $469/mt CFR last week and this week there has been an offer at $473/mt CFR, also for 5SP. “All the low levels we hear are for position cargoes, but still it means that the market is still bad,” an Asian trader said.
Offers for 3SP in long position have been at $475-480/mt CFR in Thailand, but no bids exceed $470/mt CFR.
The SteelOrbis reference price for import billet in Southeast Asia has settled at $469-480/mt CFR, down from $475-480/mt CFR last week.
