Prices for imported billet in Southeast Asian market have remained stable compared to last week, but the mood has been bearish as market sources are sceptical about the prospects for price rises after the holiday.
The SteelOrbis reference price for imported billet in Southeast Asia has remained at $530-540/mt CFR with the lower end representing bids in the Philippines, while the higher end represents the lowest offers for 5SP material. IF billet offers, which were voiced at $535/mt CFR last week, have been rare lately. Some market participants said that at least one deal was done at $530/mt CFR, but most sources believe that sellers just have left the market due to the holiday. “Vietnam is out because of Tet. Thailand has its own holiday until Monday. The same with Singapore. If nothing changes, the market will correct itself [down] by March,” an international trader said.
In Indonesia, the latest deal for Dexin billet has been reported at $540-545/mt CFR. Though this price has been assessed as being relatively high, buyers have had limited cheap options at the moment. Taking into account the higher tenders held by Iranian mills, market sources are waiting for new offers from Iran to Southeast Asia at $535-540/mt CFR at the lowest, while bids have been at $520-525/mt CFR at the highest.
On Thursday, rumors have been heard about Dexin Steel cutting offers again. But this information has been denied by most major traders selling Dexin’s billet. Offers for 3SP billet from this mill were reported at $530/mt FOB on Tuesday this week, down by $5/mt over the past week. And the latest deals were done at $521-525/mt FOB. “There is no logic in cutting prices as the holidays are around the corner and futures [in China] are up,” a trading source said. “Maybe some traders are speculating and trying to get this price [$515-520/mt FOB],” another source, based in Singapore, said.