Posted on 14 Aug 2023
The billet import market remains flat in the Philippines, Kallanish notes. The Chinese steel market slump continues to depress buying sentiment, while a gap between suppliers’ and buyers’ targeted prices is preventing trade.
Blast furnace 5sp grade billet of open-origin from a leading Indonesian producer or from China continues to be offered at $520-525/tonne cfr Manila, unchanged from end-July.
An offer for 10,000 tonnes of 5sp billet from the Indonesian mill was prevailing at around $515/t cfr Manila, market sources say. A Manila trader reports the September-shipment position cargo was booked on Thursday. This is not a back-to-back cargo as the Indonesian mill is currently offering 3sp billet at $500/t fob – around $520/t cfr Manila. Its 5sp billet is priced $5/t higher.
Traders are offering open-origin 5sp grade billet for October shipment at $518-520/t cfr but they are also asking for $515/t cfr bids, a Manila market source says.
Importers are not paying much attention to the market because there are expectations that prices should come down further, he adds. These are based on concerns over Chinese real estate giant Country Garden defaulting on debt, as well as expectations of increased supply of iron ore in the fourth quarter. Moreover, Indonesia-based Dexin and Malaysia-based Eastern will launch their new blast furnaces, he points out.
Certain traders could be willing to sell open-origin 5sp billet at $515-520/t cfr Manila, a Singapore trader says. “The problem is that there are hardly any bids in the market these days,” he notes. “Suppliers’ offers are holding up. Buyers are pushing for $10/t lower. As nobody is biting, there are no deals,” another says.
Kallanish assessed 5sp/ps or Q275 120/125/130mm square billet at $515/t cfr Manila, down $5 from the previous week.
Source:Kallanish
