The trend in the Southeast Asian billet market has reversed again as the overall weak demand without China and relatively high supply have put pressure on the market mood. Moreover, new deals have already been reported at lower levels from regional suppliers - far below $700/mt CFR, targeted by exporters a week ago.
A deal for 30,000 mt of ex-Vietnam 150 mm BF billet was done at $680/mt CFR yesterday to a major importer in the Philippines, SteelOrbis has learned. The price is $650/mt on FOB basis and the final CFR level depending on freight costs. And though this size is not very common in the Philippines, the contract reflects the weakening of bids in general.
Most offers for more common billet sized 120-130 mm in the Philippines have come down to $690/mt CFR, while suppliers were asking for $695-710/mt CFR last week. In particular, last week a small volume of ex-India billet was sold at $695-698/mt CFR Manila, but now the tradable level is hardly at even $690/mt CFR, local sources said. "There have been purchases of Vietnamese induction furnace billets at $675-680/mt CFR Manila," a local source said, but no new contracts for BF or EAF billet (120-130 mm) have been heard so far.
An offer from Russia has been reported at $690/mt CFR for 130 mm billet, according to traders, while no deal has been heard so far as buyers are aiming to get some additional discount.
A trader was offering a cargo of ex-Vietnam BF billet at $700-705/mt CFR last week, but at the moment the negotiations have moved down to $690-692/mt CFR Manila.
Demand for import billet in China has remained reduced this week and tradable prices have fallen further to $650-660/mt CFR maximum for 5SP, according to SteelOrbis, so many suppliers have had to redirect their attention to Southeast Asia. One trading source mentioned that over the past few months all billet from Southeast Asia (mainly from Vietnam, Indonesia and Malaysia) were selling to China, while now exporters from these countries have a lack of options. Indian suppliers have also been more flexible as they are trying to maintain stable export volumes and their focus on Southeast Asia.
Nevertheless, there has been no big volume offered from Russia to Asia, as suppliers from the Black Sea region have been focusing on neighbouring markets, while one major producer from Russia’s Far East region has maintenance works.
Demand for import billet in other Southeast Asian countries like Thailand and Indonesia has remained subdued. Only one deal for 20,000 mt of ex-India 200 mm bloom has been heard to Thailand at $685/mt CFR this week.
The new workable price level for ex-Iran billet to Southeast Asia has been reported at $650/mt CFR Thailand, local sources have said, claiming it is reasonable in the current conditions. No such offers have been provided so far.
The SteelOrbis reference price for import billet price to the Philippines has come to $680-690/mt CFR, down by $10/mt from early this week and $15/mt from late last week.