The trend in Southeast Asia’s import billet market has remained bearish even despite expectations late last week of an increase. Customers have been able to find low-priced offers for IF billets.
In particular, a deal for ex-Vietnam IF billet has been closed at $662/mt CFR, while ex-Thailand IF material has changed hands at $663/mt CFR, both to the Philippines, SteelOrbis has learned. This means prices have lost around $15/mt compared to the previous contract level for IF billet at $675-680/mt CFR Manila reported a week ago.
Following this, most bids for EAF or BF billet from the Philippines have come down to $670-675/mt CFR, according to sources. Offers for EAF billet from traders have been heard at $680-685/mt CFR with no deal done so far. “News about Russia's 15 percent export tax on steel items theoretically should be pushing up prices, but billet prices have continued to soften,” a Manila-based steel producer said.
No fresh offers have been heard for ex-Russia billet this week to Southeast Asia.
Meanwhile, in the near future Indian exporters are expected to remain active in offering and selling abroad, to Southeast Asia in particular. “For induction furnace billet, Indian mills have already lowered prices to $600-605/mt FOB and the monsoon season has barely started. So Indian domestic prices will continue sliding throughout July. It means we shall expect to see more and more Indian IF offers in SE Asia,” a trader said. On Friday, July 2, one of the major BF producers from India is expected to close its tender for 30,000 mt of 150 mm billet, with the price expected to go down to about $595-600/mt FOB, sources believe.
The SteelOrbis reference price for import billet (excluding IF) in Southeast Asia has been settled at $670-675/mt CFR, down by $10-15/mt on average from the level seen last week.
No fresh offers of ex-Iran billet have been heard from traders to Southeast Asia, but negotiations to Taiwan have been at $670/mt CFR.