The mood has remained bearish in the Southeast Asian billet import market this week. Most customers have been bidding at much lower levels than China’s tradable value, which is why many suppliers have stopped offering to Southeast Asia, focusing on China instead, or deciding to take a wait-and-see position.
Only one deal has been heard in the market this week - a small lot has been traded to the Philippines at $408/mt CFR. And though there has been no confirmation so far, some sources said it was from Japan as just earlier this week there were offers from this country at $410/mt CFR Manila. This deal at $408/mt CFR is higher than most bids, which are at $400-405/mt CFR, but, taking into account higher prices, that China can pay, “those who need to buy [in Southeast Asia] should pay around $410/mt CFR,” a trader said. Offers from different suppliers, including regional exporters, have been at $410-420/mt CFR Manila, but “there are very few companies offering now compared even to last week,” the major importer in the Philippines told SteelOrbis.
Taking into account that the tradable value in China has already reached $413-415/mt CFR, it will be hard for customers in the Philippines to find any sizable volumes at the lower level.
Iranian suppliers have increased offers to $405-410/mt CFR to Thailand recently after successful sales to China at $400-405/mt CFR. Most bids from Thailand have not been above $400/mt CFR, and so the market has stalled. “Buyers want to wait as the local market is not encouraged to rush in,” a source from Thailand said.
The SteelOrbis weekly reference price for imported billet in Southeast Asia has increased from $405/mt CFR to $405-410/mt CFR.
