New deals and offers for ex-China and ex-ASEAN billets have hit a new low in Southeast Asia’s import market early this week. And though traders and mills have not been willing to cut them further due to the trend reversal seen in China, buyers do not seem ready for any higher levels, at least for now.
The SteelOrbis reference price for imported billet in Southeast Asia has settled at $510-520/mt CFR, down by $5/mt over the past week. The lower end of the range is higher than at least one deal done at $500-505/mt CFR earlier in the week, as such low prices have been withdrawn by Thursday.
A deal for about 20,000 mt for ex-China 5SP billet was reported at $515/mt CFR to the Philippines late last week. And some more negotiations have been heard at $510-515/mt CFR, but with no confirmations about deals so far. A few traders have said that BOF sellers are mainly asking for $515/mt CFR Manila on Thursday, not below, while bids are still at $510/mt CFR. But “we are still getting offers of 5SP BOF material in the price range of $510-517/mt CFR Manila. Business is not good,” a steel producer in Manila said.
Also, an offer for ex-ASEAN IF billet has been at $513/mt CFR to the Philippines, down by $7/mt over the past week.
The lowest level for ex-China billet fixed in a deal was heard at $503/mt CFR to Indonesia last week, but this week offers have increased for 3SP from China to $510-515/mt CFR to both Indonesia and Thailand, according to a number of market sources. Also, one deal for ex-Iran billets has been rumored to Thailand in the “early $500s/mt C&F,” a source said, though this has not been confirmed by the time of publication.
In Taiwan, ex-Far East Russia prices have slipped to $505-510/mt CFR with some volumes sold.
As for mills, after major Indonesian producer Dexin Steel sold at least 50,000 mt at $490/mt FOB as reported early this week, market sources said that it will not accept below $500/mt FOB now. “Dexin is internally discussing possible changes after the strengthening of futures prices. No official offer as of today,” a source said.
Also, the ex-China reference price for 3SP billet has settled at $490-500/mt FOB today, up by since early this week and by $15/mt on average since the lowest level last week. Some traders have taken positions at $480/mt FOB, which have already been sold in Southeast Asia, while by Thursday Chinese traders have been more bullish.