Some major billet suppliers in Southeast Asia voiced higher offers just before the Chinese New Year holiday, expecting to start negotiations at a higher level later this month when demand will return. In the latest deals reported this week, prices have hit bottom levels, according to sources.
This week, a deal for 6,000 mt of ex-Japan has been heard at $545/mt CFR Manila for 5SP billet, according to sources. Moreover, the rumor about a 5SP billet sale from Russia’s Far East region at $530/mt CFR Manila, or $5/mt above, according some sources, has been widespread in the market, though there has been no confirmation from the major buyers in the Philippines and the same billet lot was offered and also rumored sold to China at $525-535/mt CFR, as SteelOrbis reported earlier.
Nevertheless, in the middle of this week an offer from the main exporter in Vietnam was voiced to the Philippines at $565/mt CFR for April shipment, much above the latest deals from the same supplier to China made at $547-550/mt CFR China. “Prices are almost $10/mt up in a week. Just because of China buying a few lots,” a trading source told SteelOrbis. Also, the latest offer from Russia’s Far East has been reported not below $560/mt CFR to Southeast Asia. The uptrend in the Southeast Asian import billet market will become clearer in new deals, most sources believe.
The SteelOrbis reference price for import billet in SE Asia has been corrected downwards this week to $535-545/mt CFR, down by $5-10/mt from last week, based on the latest deals and bids. Higher offers and new price levels in negotiations are expected to be reflected in the market next week.