Prices for import billet in Southeast Asia have stabilized at the level fixed in the previous deals reported last week. But the higher offers heard late last week and early this week have disappeared as exporters in China have already voiced some softer prices, following declines in futures prices.
The tradable level for Chinese 150 mm 5SP billet has been at $490/mt CFR Manila, in line with the latest deal to the leading importer in the Philippines reported a week ago. However, offers heard at $495-500/mt CFR earlier have now been withdrawn, as most market sources have seen a weakening of sentiments in China and traders have been flexible in providing discounts. “Some price softening is possible, but we are on our Holy Week break,” a source in Manila said. The Philippines has official holidays on April 2 (Maundy Thursday) and April 3 (Good Friday), as well as Easter on April 5 and Araw ng Kagitingan holiday on April 9.
Billet importers in Thailand and Indonesia have received offers for Chinese 3SP at $485-488/mt CFR, stable compared to previous deals, but $2-3/mt below the targeted prices seen early this week. “This week, China’s 3SP should be below $480/mt CFR,” an Indonesian importer said, proving that buyers are awaiting further declines if futures in China continue to soften.
Ex-Russia billet offers have been heard at $480/mt CFR this week, lower than offers early last week to Taiwan at $490/mt CFR. But “no one is interested in discussing since maybe prices will correct further,” a Bangkok-based source said.
The SteelOrbis reference price for import billet in Southeast Asia has settled at $485-490/mt CFR, down by $2.5/mt on average over the past week.
The workable price level for ex-China billet from major exporters stands at $460-470/mt FOB, down by $5/mt from the previous day and down $2.5/mt over the past week. One trader confirmed that some firm offers are at $462/mt FOB today or even lower at $460/mt FOB as futures are down and sentiment is weaker due to higher supply. But some traders are staying at $465-470/mt FOB as they see a rather stable local market.
The Indonesian mill has cut its billet offers by $10/mt from the previous day to $485/mt FOB for June shipment, but the price is stable compared to last week.
