Offer prices for import billet in Southeast Asia’s import market have been stable at high levels after the increase announced last week. However, except for a few buyers, most other importers have been quiet as they believe that a reversal of the previous upward trend may be seen.
In the Philippines, offers for 5SP 150 mm billet have been at $460-475/mt CFR, while 130 mm billet are available starting from $465/mt CFR and up to $490/mt CFR. “I would say that the market generally is still at $460/mt CFR if someone really needs to buy,” a trader said. However, a Manila-based source commented, “I believe that most Philippine buyers have billets to last and will not be in a hurry to buy again. Counterbids will probably be at $450-455/mt CFR.” The lowest offers from traders for 5SP 150 mm billet have been at $458/mt CFR, but mainly from traders who have long positions. A few big traders confirmed that most direct offers from mills in China are at $445/mt FOB at the moment, so with freight at $20/mt on average, for March shipment it is hard for a trader to sell below $465/mt CFR.
While the Chinese billet reference price has stayed at $440-445/mt FOB today, the Indonesian mill has increased its April offer for billet by $5/mt to $455/mt FOB.
Small-tonnage deals for 3SP billet have been heard at $458-460/mt CFR in Thailand and Taiwan this week, but they could not be finally confirmed by the time of publication. A few sources from these countries said that this level is high for end-users, but “nothing below this could be found except from Russia”. There have been no firm offers for Iranian billets to Southeast Asia this week.
The SteelOrbis reference price for import billet in Southeast Asia has settled at $458-465/mt CFR, with the mid-point at $461.5/mt CFR, up by $1.5/mt on average over the past week.