Though ASEAN region-based mills have been trying to push import billet prices in the region after signing deals to Europe, Africa and Turkey, in the Asian region demand has remained limited. Apart from one deal with the Philippines reported earlier this week, other Southeast Asian countries - Indonesia and Thailand in particular - have not been ready for any price increase, while some customers have even been voicing lower bids.
The latest deal for ex-Iran billet was done by a trader to Thailand at $505/mt CFR last week, at $5-10/mt below the previous contract for a sizable tonnage reported for ex-Iran billet last week to Indonesia. Some sources said that the lower price is due to the close lead time, though this was not confirmed by the time of publication.
Offers for ex-Iran billet to both countries have been heard in a wide range of $510-530/mt CFR depending on a trader and the country, but no fresh deals have been done. “Indonesia is full now, so importers won’t buy at $515-520/mt CFR levels soon,” a large ex-Indonesia importer said, commenting on the latest offer received.
“Some buyers here still do not have an appetite even at $500/mt CFR. Nowadays, Thailand is facing heavy rains and floods here and there. Stockists are not restocking for the time being. The rainy season here normally will be until mid-to-end October. Also, looking at China, we don't expect any substantial changes in the next few weeks,” a trader in Bangkok said.
As a result, the SteelOrbis weekly price for ex-Iran billet in Southeast Asia has declined to $500-510/mt CFR, down by $10/mt over the past week, based on the latest tradable price levels and the most competitive offers.
Major Indonesian BOF-based producer Dexin Steel has increased its local offers again - by $5-10/mt over the past week to $545-550/mt CFR. However, customers have not been paying attention to such high prices. One trader has been offering ex-Malaysia billet to Indonesia at $535/mt CFR since late last week.