Posted on 28 Aug 2023
The billet import market remains muted in the Philippines, Kallanish notes. Certain bullish suppliers were trying to hike offers as recently as Thursday on the back of a rising SHFE market in China. Despite a downward price correction on the SHFE after Thursday afternoon, offers prices are unmoved.
Offer prices for 5sp grade billet of various origins for October shipment remain at $515-520/tonne cfr Manila, which is the about the same level as in recent weeks. No deals are heard to have taken place during the past week.
A leading Indonesian blast furnace mill’s offer is officially $505/t fob for 3sp grade billet, but market sources hear that the mill would be able to accept $495/t fob. Traders are offering 5sp billet from the mill at $515-520/t cfr Manila, trading and importing sources say on Friday.
“I now have offers from the Indonesian mill at $515/t cfr for 5sp billet from some traders," a buyer says on Friday. He says that other traders had quoted the mill’s 5sp billet as high as $525/t cfr Manila on Thursday. The market is weak and silent, a regional trader says. He is receiving bids at only $505/t cfr Manila.
Demand for billet and construction longs has been sluggish in the Philippines for months, trading sources say. Prices are currently being supported by firm raw materials such as iron ore, scrap and coke, a Manila trader says. Steel demand has been slow because of a slowdown in construction activity in the country. He points to recent data by the Philippines Statistics Authority which indicate that construction projects fell in in the second quarter (see separate report).
Kallanish assessed 5sp/ps or Q275 120/125/130mm square billet at $515/t cfr Manila, unchanged from the previous week.
Source:Kallanish
