Sentiments in the Southeast Asian billet market are still weak. Though major suppliers have increased offers since last week, most bids have been at a much lower level. Some stray deals have been signed at a higher level compared to transactions over the past two weeks; however, sales volumes have been limited.
Offer prices from major trading companies in Asia offering Southeast Asian origin billet, as well as prices from mills in Vietnam, Malaysia and Russia, are still at $425-430/mt CFR, customers in the Philippines, Thailand and Indonesia have confirmed.
A deal for 10,000 mt of ex-Vietnam non-induction billet has been done at $420/mt CFR Thailand, which is $5/mt higher compared to the highest workable level heard last week. Market sources have said that the deal has been done “with some financial terms for the wire rod producer,” while most bids are still at about $410/mt CFR Thailand.
A small tonnage of ex-South Korea billet has been sold at $425/mt CFR Manila, which is much higher compared to deals for ex-Japan billet at $410-415/mt CFR Manila earlier, and probably has included some extras. Most sources agree that this level is still too high for customers in the Philippines and most of them have been refusing to buy even at $420/mt CFR.
Ex-India billet has been sold to one of the Southeast Asian countries at $418/mt CFR, but the details of the deals are still unknown by the time of publications.
Offers for ex-Vietnam induction billet have been heard at $412-414/mt CFR Manila, after a deal at $412/mt CFR last week. One of the major non-induction producers has been offering at $423/mt CFR to the Philippines. Malaysian billet has been available at $430/mt CFR.
Offers of billet from China are still at $415/mt CFR Manila, while some traders have reported prices as low as $405/mt CFR for some other Southeast Asian countries. Nevertheless, taking into account the high risks involved in buying Chinese origin billet, there have been no reports of deals.
The SteelOrbis reference price for billet in the Southeast Asian market has moved to $415-425/mt CFR, up by $5/mt compared to last week.