Offers prices for import billet in Southeast Asia increased first in the past week and then started to show weakness again today as traders were attempting to get better prices before the possible rebound in China ahead of the important government meeting next week. But as futures prices declined on December 5 and as buyers are reluctant to accept any rises, the positive mood is very shaky.
The SteelOrbis reference price for import billet in Southeast Asia (both 3SP and 5SP) has settled at $460-468/mt CFR, versus $450-469/mt CFR last week, so going up by $4.5/mt on average over the past week.
In the Philippines, early this week, most offers from traders for 5SP 150 mm billet were at $473-477/mt CFR, though last week a deal for this grade was rumored at $469/mt CFR and the achievable level by buyers was $465/mt CFR. “Prices are $8/mt higher now, as traders are waiting for the meeting,” a local source in Manila said. However, later Thursday, December 5, some offers have started to come at $468/mt CFR for 5SP 150 mm as “futures are going down amid weak winter conditions,” another source said.
Most offers for 3SP billet in Southeast Asia have been at $465/mt CFR or above during the week, but, after the weaker sentiments today, the tradable level is assessed at $460/mt CFR. “It’s a public holiday today in Thailand, so even early in the week the activity was very weak,” a source in Bangkok said.