Posted on 09 Oct 2023
The ASEAN billet import market was inactive last week, Kallanish notes. Regional buyers were not keen to book the limited offers floating in the market.
In Manila, Malaysian blast furnace 5sp 130mm billet for November shipment was offered at $515/tonne cfr earlier in the week. Offers for open-origin 5sp November/December shipment were mostly at $515-518/t cfr Manila, importing sources said on Friday.
There were no deals heard concluded during the week. A 26,000-tonne parcel of Russian 5sp 125mm billet was booked at $515/t cfr Manila during the week through 15 September.
Kallanish assessed 5sp/ps or Q275 120/125/130mm square billet at $515/t cfr Manila, unchanged on-week.
A cargo for Iranian 3sp, 4sp and 5sp billet, which was awarded at $477/t fob Iran, was available in ASEAN during the week. “Traders were trying to get buyers to bid at $510/t cif,” a Thai trader says. But the supplier found it difficult to accept this bid price because freight for a full 40,000t vessel from Iran to ASEAN is $30-35/t.
The price does not attract Thai re-rollers either. Thai buyers are targeting to book at under $500/t cif, particularly since the THB has weakened in recent days. “Billet priced at over $500/t cif cannot make it here,” says a Bangkok trader who thinks buyers are aiming to import at $490-495/t cif. Domestic rebar and scrap prices are falling, he adds. Most other-origin offers are at above $510/t cif. Another says that some Thai buyers are even targeting to book billet at $480/t cif.
The Iranian billet cargo was offered at $515/t cfr Jakarta but was not heard booked. Indonesian blast furnace 3sp 150mm billet is currently offered at $525/t cfr Jakarta. “The market is quiet,” an Indonesian re-roller says.
Trading sources are however optimistic the market could pick up. "Historically, there is usually an uptick when China reopens after a long holiday," a Singapore trader says. He sees offers possibly rising to $520-525/t cfr at the start of the coming week and later settling at $515-520/t cfr.
Meanwhile, 50,000t of 3sp 150mm Indonesian blast furnace billet was ordered at around $520/t cfr Mumbai sometime early last week. The booking is notable because it is the first time India has imported ASEAN billet, a Singapore trader says. Freight is estimated at around $25/t.
Source:Kallanish
