Prices for import billets have increased in Southeast Asia this week, but overall demand has remained limited. Offers from traditional suppliers, including Russia and India, have been at $398-408/mt CFR or $403/mt CFR on average, $8/mt above the last week level.
There has been an enquiry from Philippines and the deal for Russian material has been under negotiations at $400/mt CFR, but the information that the contract has been already signed has not been confirmed.
The lowest offers have been coming from India at $398/mt CFR to Philippines, though customers said mills have been not willing to give any additional discounts. Offers from Vietnam have been heard at $395-405/mt CFR, but it was also out of buyers’ interest as it was for billet produced in induction furnaces. Russian mills have been offering at $400-405/mt CFR. Some offers have been heard even at $408-409/mt CFR Philippines. “I can understand that all steelmakers need to increase price to avoid losses from depressed prices. But there is no energy in the market,” a Manila-based customer told SteelOrbis. Another billet importer in Philippines said that rebar demand is still there, but it slowed down recently.
The situation in other Southeast Asian countries have been even worse as buyers cannot accept higher prices, because of weak finished steel products quotations. Offers for Iranian billet have increased to $385-390/mt CFR Thailand against $380/mt CFR last week.
