Though in general mills’ FOB prices for billets in China and the ASEAN region have not fallen sharply since last week, import quotations in the Southeast Asian market have continued to lose ground rapidly. The main reason for this is the aggressive policy of traders, who are offering in positions, trying to liquidate stocks in the negative market, SteelOrbis has confirmed on April 12.
Most offers for 5SP 130 mm billet have been reported at $560/mt CFR from a number of traders and have been confirmed by most end-users. “Billets are being offered at $560/mt CFR Manila left and right. It is panic time for billet traders and billet manufacturers. Everybody, including billet buyers are losing money heavily,” a Manila-based re-roller said. One deal for ex-Dexin material has been rumored at this level, but no confirmation has been available so far. Some sources said that importers are silent in terms of bids, while some believe that in these conditions new bids would be at $555/mt CFR maximum.
“Those small lots booked last week [for IF billets at $560-565/mt CFR] may be expensive already by the week's end or next week, as more offers for EAF/BF billets in shorts and positions are at this price,” a local trader said.
Offers for billet from Russia’s Far East region have also emerged again in the Philippines, at $560/mt CFR, with no new deals reported so far.
In Indonesia and Thailand, the market is nearly at a standstill. Sources said that deals in the local market in Indonesia done at close to $585/mt CFR a week ago are considered “expensive” and buyers are reluctant to give any bids.
The SteelOrbis reference price for import billet in Southeast Asia has settled at $555-565/mt CFR, down by $22.5/mt over the past week.
