Though prices for imported billets posted some increases in Southeast Asia last week, this week sentiments have worsened again. Some first signs of a weakening of the market have emerged with a few traders’ offers at lower levels, in short positions in particular.
The SteelOrbis reference price for imported billet in Southeast Asia has moved down just slightly by $2.5/mt on average to $505-520/mt CFR, with the midpoint at $512.5/mt CFR.
Though ex-Malaysia 5SP billets are still available in the Philippines at $520/mt CFR for late December-early January shipment, some lower prices for 3SP billets have been seen in the market. Chinese traders have been offering 3SP billets at $510/mt CFR for 3SP and $515/mt CFR for 5SP in Manila, while traders’ offers to Taiwan and Thailand have been heard at $505/mt CFR, also for ex-ASEAN BOF 3SP billets. “Prices have already dropped [especially buyers’ price ideas] this week and buying has been scarce in the negative market,” a trader from Manila said.
An offer for ex-Vietnam IF billets has been reported at $500-505/mt CFR, slightly down from $505/mt CFR last week.
The lowest offer in the Southeast Asian market has been heard for ex-Russia billet at $495/mt CFR to Taiwan and Thailand. “The price has fluctuated in a limited range because real demand remains low,” an international trader said.