Buying activity in the Southeast Asian billet market has weakened after the increase seen last week. Suppliers have failed to increase prices above $650/mt CFR and some of them have turned to sales to China instead of to Southeast Asia again.
The SteelOrbis reference price has been settled at $645-650/mt CFR on Thursday, stable compared to last week, but most bids this week have been heard at $645/mt CFR.
“Demand in the Philippines is just so so. Buyers are afraid to buy too aggressively,” a domestic re-roller said. Most offers for BF billet have been heard at $650-660/mt CFR, while ex-India IF billets have been offered at $640-645/mt CFR.
There has been information in the market about an offer for 24,000 mt of billet from Russia’s Far East region and, though some sources said that it has already been sold to the Philippines at close to $650/mt CFR, the majority of market sources agree that demand overall has weakened and that bids are mainly below this level.
“Customers are not considering releasing bids higher than $650/mt CFR. The current price level in the market is close to $645/mt CFR,” a large Asian trader said, adding that it may change in the future if China continues to buy at higher prices.
Offers for Iranian billet from traders have been increased to $630-640/mt CFR minimum for June shipment and some suppliers have already voiced levels as high as $660/mt CFR. The latest deal was done for 25,000 mt of Iranian billet at $625/mt CFR Thailand, slightly more than a week ago.