Posted on 04 May 2023
Russian billet is once again being offered in the Philippines, Kallanish notes. It had earlier made a hasty exit from the market after economic sanctions were imposed on Russian material.
Russian 5sp grade 125mm billet was offered last week at $535/tonne cfr Manila, trading and importing sources said on Tuesday. “But there was no interest,” adds a trader who heard of the offer. However, Russian 3sp billet is widely heard to have been concluded last week in Taiwan at $520-525/t cfr. A Kaohsiung trader hears that at least 50,000 tonnes was booked; however, a regional trader hears it was 30,000t.
"It has been deathly quiet,” a Manila trader says. He has not heard of offers this week, with Chinese traders, Vietnamese traders, and regional mills still on holiday. Price indications from traders were still at around $525-535/t cfr last week, he adds. “Prices are sliding towards $500/t cfr,” a second Singapore trader says.
Traders who are short-selling are bringing down the market. He notes that offers were already at $500/t last November but prices subsequently sprung up on optimism of a strong Chinese post-Covid recovery which did not materialise. “So, the price downturn is not surprising, but the sudden pace of the drop is,” he says.
Given that the billet market is currently very weak, importers are shunning offers or else giving very low-priced bids. In Thailand, certain traders are inducing bids for Indonesian blast furnace billet at $520-530/t cif Ko Sichang. “But buyers prefer to sit on their hands,” a Bangkok trader observes. If they do want to negotiate, they want to start negotiations at $500/t cif, he adds. “Scrap in Thailand is dropping further,” another notes.
In Vietnam, a Hanoi trader hears of Russian SS400 grade hot rolled coil offered at $550/t cfr Vietnam but is unable to confirm this. Since Vietnam remains on holiday till 3 May, other sources in Vietnam say they cannot confirm this either. “Demand is not good in Vietnam. With a long voyage time of up to three months for Russian exports, buyers may have no interest to book this if the offer is real,” a southern Vietnam trader says. “These are more rumours [than real],” the first Singapore trader opines.
Source:Kallanish
