Offers for import billet in Southeast Asia’s import billet market have remained stable compared to last week with trading activity subdued partially because of the holidays. However, market sources share a rather negative outlook, seeing softening futures prices in China and the backward step taken by the Indonesian mill.
The latest offers for 5SP billet were coming at $490/mt CFR to the Philippines earlier this week, but activity has been close to zero as “it is a national holiday today, and no one is active actually”, a Manila-based source said on April 9. This price level reflects the previous deals done to the country, so in general the market is evaluated as unchanged.
Similarly, offers for 3SP billet, mainly from China, have been heard at $485/mt CFR in Indonesia and $485-487/mt CFR in Thailand, also stable from last week. “Dexin’s 3SP billet price has dropped by $10/mt in the last two days. For us it is a sign that the market may soften, even though China keeps the same offers,” a Jakarta-based source said.
As for April 9, ex-Indonesia billet offers are at $485/mt FOB for June shipment. They lost $5/mt yesterday and today. “Dexin’s price is still very high for Southeast Asia. They will target the GCC but, with all the big problems there, I don’t see new deals,” an Asian trader commented.
The most competitive price for Asian billet is still from China, at $460-465/mt FOB, which is $2.5/mt below the level seen late last week.
