Bullish sentiments have prevailed in Southeast Asia’s import billet market this week, but, unlike the previous few weeks, some buyers have been more eager to purchase, though ex-Iran billet supply has been disrupted.
Two deals for ex-China billets are rumored to have been done to Thailand this week. One of them has been heard for 130 mm billet with manganese content of 0.6 percent minimum at $472/mt CFR for April shipment. The other deal has been heard for 150 mm 3SP billet at $460-465/mt CFR, which is $10-15/mt higher than the previous deal done for the same grade and size, but it is for May shipment and for sanctioned material. “The increase was accepted because people worried about delays in shipment from Iran,” a source in Bangkok said. Also, one bid from Indonesia has already been reported at $470/mt CFR for Chinese 3SP billet today, March 5.
There has been limited availability of billets of non-Chinese origin as Russian mills are sold out for April and are not active in offering for later shipments.
In the Philippines, offers for Chinese 5SP are at at least $465/mt CFR for 150 mm and $470/mt CFR for 130 mm. “We see offers increase today, while early this week $460/mt CFR was still available, but not now,” a Manila-based source said.
The SteelOrbis reference price for import billet in Southeast Asia stands at $460-470/mt CFR, adding $2.5/mt over the past week, but, while last week the price mainly reflected offers, now it reflects actual deals.
Bullish sentiments have prevailed in China with most offers heard at $450/mt FOB by the end of this week. The Indonesian producer has again increased its official offer, by $5/mt to $460/mt FOB.
