Posted on 20 Mar 2023
The billet import market in the Philippines slowed on Thursday after some buying activity earlier last week, market sources tell Kallanish.
Deals were struck for Chinese 5sp 150mm grade billet, and for EAF and induction furnace 5sp 130mm grade billet from Vietnam at $620/tonne and $630/t cfr respectively in the early part of the week ending 17 March. Some Philippine buyers were giving “soft” bids at $620/t cfr for 5sp billet on Thursday, a regional trader says. He does not think they secured material despite Thursday’s drop in Chinese steel futures. After the improvement in futures on Friday, he “further doubts that they can get $620/t cfr for 5sp”.
Buyers will perhaps pay only up to $620/t because local rebar prices are “terrible”, another Manila trader observes. He hears of Chinese-origin wire rod currently offered at as low as $620/t cfr, which indicates that current billet prices are too high and imported long products are too low. Kallanish assessed 5sp/ps or Q275 120/125/130mm square billet at $620-625/t cfr Manila, down $10 on-week.
Offers for Thai 130mm induction furnace billet for April shipment, and for Chinese 130mm/150mm billet for May shipment were at $625/t cfr Manila on Thursday, a Manila trader says. He is doubtful of anyone bidding as buyers were “spooked … over the US banking and Credit Suisse crises, not to mention the precipitous drop in the SHFE”. Agents could be indicating they have bids when they are actually trying to “fish” for bids. He last heard bids at $630/t cfr on 13 March.
Import offer prices for blast furnace billet were at $640/t cfr Manila and induction furnace billet at $630/t cfr, a Manila importer says. “Today, it’s $5/t lower,” he noted on Friday. On suppliers seeking bids in the current market, he says: “Every seller now has to concoct exotic snares and traps to coax the hesitant, unsure and vacillating buyer to take the plunge.”
A Malaysian re-roller received an offer on Friday for 10,000 tonnes of 3sp 130mm blast furnace billet at $640/t cfr. The cargo from Indonesia’s Dexin is due for May shipment but may be negotiated to be shipped in April instead. It is subject to reconfirmation. The banking crisis has made it “scary” for buyers, the re-roller says. “Things can change so fast.”
Source:Kallanish
