Higher scrap prices have pushed up prices for billet in Vietnam. Moreover, domestic suppliers have been active in the export market as well.
Local billet prices in Vietnam are standing at $410/mt ex-works, $10/mt above the level in late November. Import scrap prices have added $10-15/mt in the past two weeks, resulting in higher billet offers.
The latest deal for Vietnamese induction furnace (IF) billet was heard to the Philippines at $430/mt CFR last week, against $420-425/mt CFR in late November.
Moreover, according to reports from a number of sources, billet produced by a major domestic BF-based producer has been offered at $420-425/mt FOB. There has been information that the deal was done to the Philippines at this level, which is equivalent to $435-437/mt CFR, but SteelOrbis could not confirm this by the time of publication. “A trader has been offering Vietnamese non-induction billet at not lower than $440/mt CFR, but bids are lower,” a Manila-based trader told SteelOrbis.