Posted on 20 Feb 2023
Billet import prices in Southeast Asia have quickly bounced back in tandem with the Chinese steel futures recovery, Kallanish notes. Prices appear set to remain firm this week.
Further import bookings of blast furnace billet were heard concluded early last week at below $600/tonne cfr Manila. One Manila buyer hears open-origin ASEAN/Chinese 3sp/5sp 150mm billet was booked at $590-595/t cfr.
Market chatter of a parcel of Chinese 3sp grade billet transacted last week at $585/t cfr raised some concerns of the market softening. However, Philippine and regional traders say they were unable to confirm the deal with buyers. Position cargoes of regional 5sp grade billet had concluded at $595/t cfr Manila during the week ending 10 February.
A Thai trader hears of 15,000 tonnes of regional 5sp grade billet for March shipment was booked at $598/t cif Thailand early last week. “There were billet offers in the market, as low as $585/t cif for 3sp 150mm billet, but there are no fresh offers in the past two or three days,” he commented on Friday. Sales of position billet cargoes at "aggressive prices" during the past two weeks have dented the domestic rebar and scrap markets in Thailand, he added.
“There is nothing below $600/t anymore,” a Manila trader notes. He received an offer on Friday at $615/t cfr for Chinese 5sp 130/150mm billet for April shipment. But he is not seeing offers for regional ASEAN billet. Blast furnace Chinese 150mm 5sp billet from Tangshan is currently offered at $615/t cfr Jakarta for end-March/early-April shipment, a Chinese trader says. Chinese billet offers were at $605/t cfr last Monday, a Jakarta trader informs. Based on current Chinese futures prices,"$595-600/t is reasonable for now”, he adds.
The regional billet market is “following futures – cycles are so short”, another Manila trader says. He sees current offers at $615-620/t cfr for 5sp billet. “Prices will still be rising in the coming days,” he adds. Kallanish assessed 5sp/ps or Q275 120/125/130mm square billet at $595-600/t cfr Manila, up $2.5 on-week.
Meanwhile, domestic billet prices in Tangshan are surging, registering daily increases over the past four days. Prices settled on Friday at CNY 3,870/t ($562/t), up CNY 20 on-day and up CNY 120 since 13 February.
Source:Kallanish
