Although price changes in the Asian billet market have been limited in general after the fall last week, more offers in line with last week have emerged in SE Asia, however buyers have been cautious, waiting for a settled trend.
Offers for 5SP 150mm billets have been at $510-515/mt CFR to the Philippines for different origins, while 3SP billet offers have been at $505-506/mt CFR. “It is rainy season plus August is off season, so the market is quiet,” a Manila-based source said. Last week the market was discussing mostly Chinese origin billet, which was the lowest in terms of prices – a deal for 5SP was at $505/mt CFR for 5SP. But this week, most offers for Chinese origin have been at $510/mt CFR, while more other origins have emerged like open origin – up to $514/mt CFR (including ASEAN), also, ex-Korea offers have been at $511-515/mt CFR. “I think that the reasonable price for Manila is still $505-510/mt CFR. Not that low [$505/mt CFR] is available, but I do not feel price can rebound,” a trader said.
Also, ex-Asia IF billet offers for 5SP have been reported at $508-510/mt CFR Manila with the counter bids at $500-505/mt CFR. Market sources said that buyers may resume purchases, when the trend will be clearer. If the resistance to further fall in China will be strong, they may accept the current offers, according to sources.
In Indonesia and Thailand, most offers have been reported at below $510/mt CFR for 3SP for all Asian and Iranian origins. “Traders are inviting bids below $505/mt CFR for ex-China 3SP,” a Jakarta-based source said.
The SteelOrbis reference price for imported billet (3SP and 5SP) has remained stable at $501-512/mt CFR, with the midpoint at $506.5/mt CFR, including offers, bids and tradable levels.