Prices for imported billet in Southeast Asia have found a temporary bottom, though some traders have continued to offer in short positions at lower levels than last week, while the majority of prices have been stable or have even posted some rebound. Market sources have started to be more optimistic, seeing some signs of a rebound in China after today’s increase in futures prices.
After a deal at $485/mt CFR for 5SP ex-Indonesia billet to the Philippines, no new booking has been heard so far. Some market sources have reported negotiations at $480/mt CFR for both Chinese and Indonesian material, but there has been no confirmation about deals having been done. Offers are at $490/mt CFR today, August 1.
At the same time, in Indonesia and Thailand, offers for ex-China 3SP billet have been still at $470/mt CFR in most cases. However, on Thursday, August 1, sentiments started to change. “A trader offered 3SP at $460/mt CFR early this week, cheap in short position, but most offers for Chinese billet are at $480-490/mt CFR now,” a Bangkok-based source said. Another source said that the Thai market is the still poorest in the region and from calculations from local rebar prices billet has to be at THB 16,000-16,200/mt or equivalent to $450/mt CFR.
The SteelOrbis reference price for 3SP and 5SP import billet in Southeast Asia has remained at $470-485/mt CFR this week.