Market sources are waiting for a price correction in the Southeast Asian import billet market as customers have withdrawn from the market over the past few days and supply volumes have exceeded demand recently. Moreover, Chinese traders have started to offer more actively in the export market as local prices in China have been under pressure.
The fresh offers for major integrated steel mills from Russia, Vietnam and Indonesia have been heard mainly at $610-615/mt CFR the Philippines, but some Southeast Asian suppliers have already been ready to deal at $605/mt CFR. At the same time. Most bids in the Philippines have been heard at around $600/mt CFR or below, according to sources. Last week, at least two bookings were at $605-610/mt CFR to the Philippines.
Also, there are reports of a position cargo from Vietnam sold at about $595/mt CFR Manila earlier this month, though there is no confirmation about the quality of the material. Offers for IF billet from Vietnam are coming at $595/mt CFR Manila at the moment. “Few are in a hurry to buy billets in today's market,” a Filipino re-roller told SteelOrbis. “Most buyers withdrew in the last few days. It is already a very inflated price level, and honestly rebar has not kept up,” a trader said.
A deal for an ex-China billet cargo has been rumoured at $585/mt FOB in the market, while some sources said it was for the Philippines, but this has not been confirmed by the buyer’s side by the time of publication. This price level corresponds to around $600/mt CFR Manila. According to sources, over the past two weeks there have been offers from Chinese traders to the Philippines at $585/mt CFR, but no booking has been confirmed.
Bids for imported billet in Indonesia and Thailand have remained lower than in the Philippines. Sources report that position cargoes from traders have been offered at $600/mt CFR and slightly below to Thailand. “But there is no taker at $600/mt CFR now,” a local trader said.
The SteelOrbis reference price for imported billet in Southeast Asia has been lowered to $595-605/mt CFR, down by $5/mt over the past week.