Posted on 19 Jul 2023
The ASEAN billet import market has softened further with deals taking place at slightly lower levels, Kallanish notes. Buyers are willing to accept less popular billet because of its lower prices.
A 26,000-tonne cargo of Russian 5sp grade 125mm billet for August shipment was booked last Friday at $510/tonne cfr Manila. In Thailand, a buyer has disclosed a 10,000t order done on Monday of 3sp grade 100mm billet from another Russian mill at $500/t cfr. A Singapore trader says he was not surprised about low-priced Russian cargoes appearing in the region. "Their [Russian mills’] offer to Turkey is also very low," he says.
In the Philippines, 3sp grade induction furnace billet from Malaysia for August shipment settled this week at around $503-505/t cfr. A trader took the 10,000t cargo but only 5,000t has been sold to a customer, local trading sources say.
“Offers are continuing to soften with most offers now for 5sp billet hovering at around $520/t cfr Manila,” a Manila trader says. He heard of a small, 5,000t lot order for August shipment on Tuesday at $520/t cfr Manila. This is most likely Indonesian billet, although the seller has the option to supply any Southeast Asian origin, he adds.
Offers for 5sp billet were prevailing at $515-525/t cfr Manila last Friday. Weak demand and the unloading of traders’ position cargoes are depressing the market this week. “The disappointing GDP number in China isn’t helping either,” the trader opines.
A Chinese trading house was heard to have sold 3sp grade billet at $512/t cfr Indonesia and at $510/t cif Thailand last Thursday. Some traders heard of the deal to Thailand. But a regional trader says he doubts there was anything concluded because Indonesian customers were bidding then at $495/t cfr and Thai buyers at $500/t cfr.
Source:Kallanish
