The billet price rally in the Asia market has also continued this week. Though the overall number of deals for imported semis in China has been lower, prices have increased again, visibly pushing up prices for Southeast Asian customers. As a result, some buyers have decided to accept a new price level.
Billet prices reach new high in deals to the Philippines
The SteelOrbis reference price for imported billet in Southeast Asia has increased by $15-20/mt over the past week to $480-490/mt CFR this week, amid higher offers and recent deals. According to local sources, bids for imported billet reached $475-485/mt CFR in the Philippines in the middle of the week and a few contracts for Russian billet have been signed at $480/mt CFR Manila this week. Customers were looking for this price level on Thursday, but offers had already increased further. The offer price level from Japan is at $488/mt CFR, while most other exporters have been insisting on $490/mt CFR or above. One of Manila-based re-rollers has reported a single booking of Russian billet already at $490/mt CFR base.
The fundamentals in the Philippines are not very bright, but customers who needed to buy have not been able to resist suppliers’ bullish attitude. “The Philippines’ debar market is still very weak. China is the only mover,” one local re-roller said.
“I believe a further increase may be seen in the coming days. It's not only China who is buying. The US is very strong and Europe is firm. Turkey is buying high. The worry though is when will the correction be?” a Philippines-based trader said
Buyers from Indonesia and Thailand buy only from Iran
Buyers from Indonesia and Thailand have been resisting a further increase in billet prices, so they have focused on purchases from Iran at lower price levels. A deal for 10,000 mt of 3SP 150 mm billet has been closed at $455/mt CFR for January shipment. There have been rumours about another contract at almost the same price level at slightly higher towards $460/mt CFR, but it could not be confirmed by the time of publication.
Offers for Iranian billet were heard at $455-460/mt CFR early this week, but later most sellers decided to wait for prices to go up more. Taking into account the higher price in the Iranian export tender for 30,000 mt closed at $438/mt FOB, import billet prices to Thailand and Indonesia will increase to $468-470/mt CFR soon, sources have said.
Chinese import billet market strong, supply volumes limited
In China, the latest booking for 10,000 mt of Vietnamese BF billet has been reported at $485/mt FOB, equivalent to $495/mt CFR China for February shipment. Subsequently, there have been no new offers heard from the supplier from Vietnam as “they still have 40,000 mt for February shipment but no offers now. They are still waiting for the market,” a source commented.
This means that the price level for imported billet for non-Southeast Asia material to China has reached $485/mt CFR, up by $5/mt from the previous sale from Russia’s Far East region, as SteelOrbis reported early this week. According to sources, there is demand in China for billet with high manganese content, which has a premium for base billet prices and could be sold at up to $500/mt CFR China.