Asian traders have been actively increasing offers for billet in Southeast Asia over the past few weeks and, even though FOB levels from major BOF-based mills have declined slightly this week, traders are still hoping that buyers from Asia will accept some increases soon. However, as offers for ex-ASEAN IF-based billet offers have again emerged at relatively low levels, a further uptrend in Southeast Asia is doubtful.
Fresh offers for ex-Thailand and ex-Malaysia IF billets have been reported at $527-530/mt CFR Manila this week. At least one deal for 10,000 mt of Malaysian material for February shipment is heard to have been done to the Philippines “near $530/mt CFR.” This price translates to $540/mt CFR as tradable for BOF billet, according to sources. As SteelOrbis reported earlier in the week, the most recent deal for BOF material to the Philippines was done for Indonesian 5SP billet at $542/mt CFR last week.
“This is a low price for buyers, so all eyes are on IF now. BF offers are too high at up to $555/mt CFR Manila,” an importer from the Philippines said.
Offers of other cheaper origins have been scarce. For instance, some market sources said that indicatively ex-Russia billet offers are still at $530-535/mt CFR Taiwan, but sellers have not been in a rush to sell. Also, the nominal level for Iranian billet is at $520-525/mt CFR Thailand.
The SteelOrbis reference price for imported billet in Southeast Asia (EAF/BOF, with sanctioned Iranian and Russian material excluded) has settled at $538-542/mt CFR, stable on average from last week.