The downtrend in the Southeast Asian billet market has continued this week as customers have been insisting on additional discounts from major suppliers following recent low-priced deals made by CIS-based mills in the region. The market prices have lost $5-10/mt over the week and have come to $410-420/mt CFR, SteelOrbis was informed.
About 40,000 mt of ex-CIS billet from Black Sea have been sold to Philippines at $423-424/mt CFR for October shipment last week. This week most customers in Philippines have negotiating at not higher than $420/mt CFR. “We have already received offers at $418-420/mt CFR, but the market is soft,” a local source said. Consumers in Philippines can get $415/mt CFR for Indian-origin billet, which have been purchased by traders earlier, market sources believe.
Indonesian long steel producer has managed to buy 40,000 mt of CIS billet from Black Sea at $405/my CFR for October shipment last week, $10-15/mt bellow the market prices that time. This week the market price has remained at $410/mt CFR as “this deal means that the customer has been really successful in negotiations, but I doubt that any other regular buyer can do the same,” an international trader commented. “Most customers are bidding at $400-405/mt CFR, but we have failed to get it yet” a Bangkok-based customer said. Official offers from Russian supplier at Far East have been heard at $420/mt CFR for November shipment, while offers from traders for Indian billet have been coming mostly at $410-415/mt CFR in Indonesia and Thailand.
Offers for ex-Iran billet in Southeast Asia have also decreased by $5-10/mt to $395/mt CFR, but it has failed to attract buyers’ interest.