Posted on 16 Oct 2023
The ASEAN billet import market remained quiet last week, Kallanish notes. A price stand-off continues between buyers who are facing weak finished steel demand and supplying mills which face higher steel production costs.
Offers for 5sp 130mm billet are generally prevailing at $520/tonne cfr Manila, according to market sources in Manila. One buyer says Indonesian 5sp 130mm blast furnace billet is offered at $515/t cf Manila but others are unaware of this offer.
The Indonesian billet mill is targeting to export its 3sp billet at $500/t fob, so the offer for 5sp billet at $515/t cfr is lower than regional traders expected. Freight costs are around $15-17/t to Manila. The mill is currently quoting 5sp billet at $523/t cfr Jakarta and its 3sp billet would probably be priced at $515/t, an importer says.
Chinese 3sp 150mm billet is currently offered at $505/t fob and 5sp billet at $515/t fob. Freight from China to Manila costs around $20/t. However, Chinese billet is typically 150mm square and re-rollers in the Philippines mostly use smaller billet.
The Manila market is “totally stagnant”, a regional trader says. “Buyers want a cheaper price for 5sp billet because of the soft finished steel market. It is however difficult to source due to cost-push factors on the seller side. And it is tough to find 130mm square billet, so buyers need to pay a premium,” a regional trader says. This is not the case for 3sp grade billet where supply can be met from numerous induction furnace mills, resulting in no premium, he adds.
A 20,000-tonne cargo of induction furnace billet from Thailand is floating in the market. The offer is for 17,000t of 120mm 3sp billet and 3,000t of 130mm 4sp/5sp billet at $498/t cfr Manila. The seller for the November-shipment cargo is inviting bids at $495/t or $492/t cfr.
Philippines buyers are bidding at $505/t cfr for 3sp blast furnace/EAF billet and at $510/t cfr for 5sp, a Singapore trader says. He did not hear of any trades last week. Kallanish assessed 5sp/ps or Q275 120/125/130mm square billet at $515/t cfr Manila, unchanged on-week.
Meanwhile, several floating cargoes of Russian billet were still available last week in Thailand. A 30,000t cargo of 3sp 130mm and 150mm billet for prompt shipment was booked at $490/t cif, a Bangkok trader reports.
Source:Kallanish
