Import billet prices in the Southeast Asian market have continued to seek a new low, touching $500/mt CFR for Asian origins. This happened due to weak sentiments in China amid falling steel and raw material prices, while traders have started to be more aggressive, offering in short positions.
The SteelOrbis reference price for import billet in Southeast Asia (both 3SP and 5SP) has settled at $500-510/mt CFR this week, losing $10/mt over the past week. Despite the expectations for a trend reversal last week given some optimism in China, prices have failed to improve and have slipped further, reacting to the resumed drop in the Chinese steel market.
Offers for 3SP 150 mm billet from traders have been reported at $500/mt CFR to the Philippines, Indonesia and Thailand on Thursday, March 28. One source said that 5SP billet offers, which were at $515/mt CFR Manila last week, dropped to $508-510/mt CFR on Wednesday and have fallen as low as $502/mt CFR from some sellers today. “The market is not good. It means losses for all,” a Manila-based re-roller said.
A few market sources confirmed that the lowest offers in the market have been from traders for open Asian origin and “they are definitely shorting, as FOB prices are not there yet,” a trader said. The latest sales by an Indonesian mill were at $490-495/mt FOB, for at least 100,000 mt, which translates to $510-515/mt CFR Southeast Asia. Though ex-China FOB prices are lower and more suitable for traders - at $480-485/mt FOB (down by $10-15/mt over the past week) - they are not in a hurry to sign deals and prefer to offer in short positions in such a falling market.
After sales of over 100,000 mt of billets to Taiwan at $500-505/mt CFR last week, a mill located in Russia’s Far East region has been asking for $508/mt CFR, hoping for better prices amid the improved mood in the scrap segment.