Prices for imported billet have declined further in Southeast Asia this week as more lower offers have emerged, while bid prices have continued to go down gradually. As demand from China is critically low, suppliers have had no other option but to be more flexible.
Most offers from traditional suppliers, from Russia, India and Vietnam, have been at $445-450/mt CFR the Philippines: however, some suppliers have already lowered them to $442-443/mt CFR. A small-volume deal for induction furnace billet from Vietnam was reported at $445/mt CFR last week, as “it was the workable level that time”, but at the moment bids have fallen to $440/mt CFR for even BOF and EAF billet, according to two re-rollers. Moreover, “There are already many offers at $445/mt CFR or under, so buyers will ask $440/mt CFR maximum now,” an international trader told SteelOrbis.
Indonesian integrated steel mill Dexin has focused on domestic sales and has managed to trade at least 30,000 mt of billet at around $440-445/mt CFR, sources have confirmed. “It is the sign that they cannot sell to China like before,” a source from Indonesia said. The billet was for wire rod production. “The wire rod price is higher than rebar, so mills can afford higher billet prices,” he added.
In Thailand, negotiations for Russian billet have been heard at $440-445/mt CFR, with one cargo sold at the higher end of the range last week. Offers for ex-Iran billet from traders have slipped to $435-440/mt CFR Thailand, according to local sources.
Buyers from China have been very quiet over the past few weeks due to the downtrend in the local market and the mixed outlook for post-holiday demand. “We don’t have interest at even $415/mt CFR,” one trade said.
The SteelOrbis reference price for imported billet in Southeast Asia has lost another $5/mt since last week to $440-445/mt CFR.