Deal prices for ex-ASEAN billet improve, though CFR prices in SE Asia still lag behind

Tuesday, 28 November 2023 12:48:59 (GMT+3)   |   Istanbul
       

Deal prices for ex-ASEAN billet have improved this week, while offers have remained at the previous high levels. The market is supported by still cautious positive sentiments in China, somewhat better interest from buyers and the start of January shipment sales.

Ex-Indonesia 3SP billet offers have been reported at $525/mt FOB, versus $520-525/mt FOB last week. But while the previous deal price levels were at $510-513/mt FOB, at least one deal for January shipment for limited volumes of 10,000-20,000 mt was reported as having been done to Latin America at $520/mt FOB. “I didn’t hear that such a high level was accepted [in the Asian market], but it is possible for a distant market,” a Chinese trader said. Malaysian billet offers have been limited and assessed at near $530/mt FOB.

Ex-China 3SP reference billet prices have been settled by SteelOrbis at $525-535/mt FOB, up by $5/mt on the upper end of the range since late last week. “China is the only indication now. Most trades are done locally,” a trading source said.

At the same time, in Southeast Asia’s import billet market, prices have also been slowly going up, though they are still lagging behind the rise seen in FOB price levels in the region. In particular, one deal for a position 5SP 150 mm billet volume from a trader for ex-Indonesia billet has been heard at $530/mt CFR to the Philippines, but market sources believe that it is for December shipment. This price is slightly above the $525-528/mt CFR levels assessed as tradable last week. However, most offers for EAF/BOF billets in the Philippines are at $535-540/mt CFR, up by $5/mt over the past week.

Offers for ASEAN IF billets have been at $515-520/mt CFR, so in line with the previous deal for ex-Malaysia material done at $518/mt CFR.

Active negotiations have been held for ex-Russia billet in Asia as well. One of the main Far East Russian mills sold billet to Taiwan at $510/mt CFR for December shipment early last week, and new offers have been heard at $515-520/mt CFR to this market.

There has also been a rumor of a sale of ex-Far East Russian billet to the Philippines at $520-525/mt CFR, but this could not be confirmed by the time of publication. However, the targeted level of one Russian mill for January shipment sales is at $525/mt CFR Manila.

The lowest price in Southeast Asia is still reported for ex-Iran billet. A deal to Indonesia was reported as done at $505/mt CFR early last week, versus previous offers at $510-515/mt CFR in the region. But “I don’t think that there are offers at such levels now. Traders have stepped back,” a Singapore-based trader said.


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