Posted on 18 Dec 2023
The price gap in the Manila billet market is narrowing with the appearance of some low-priced offers, Kallanish notes.
Several offers for 5sp blast furnace billet from ASEAN/China for end-January/Feb shipments have fallen to $536-538/tonne cfr, trading sources say. Offers were prevailing at $540-560/t cfr the previous week.
An offer for 10,000 tonnes of 130mm square 5sp Indonesian billet was floated at $533/t cfr in the market earlier last week. The low price indicates it is a trader’s position. Two sources hear this cargo was booked, but others did not.
Separately, regional mills are still keeping 3sp billet offers firm, with Chinese material heard quoted at $525/t fob and Vietnamese at $545/t fob. A leading Indonesian mill is offering 3sp billet at $535/t fob. A source close to the Indonesian company says the mill has been selling well, with export orders already reaching end-February shipments. The mill has been active in exports to the EU and South America lately, the source adds.
“The market now is quiet,” a Manila importer says. He attributes this to the approaching Christmas holidays. Most offers from the Indonesian mill are at around $555-560/t cfr or, if from traders, at around $20/t lower, he says. “These traders either have position cargoes to sell or else dare to short sell,” he says. “I don't see many bids in the market these days. Most buyers are already in a holiday mood,” a Singapore trader concurs.
“The market is very poor,” a regional trader notes. He thinks that $530/t cfr is the level of resistance or support for the Philippine market. The market is softer now, a Manila trader says. While he thinks buyers will pay up to $530/t cfr Manila, he was "still struggling to get bids at around that level”.
On Friday, some said the Indonesian mill’s offer for 3sp billet in the region had dipped to $525-530/t fob. An Indonesian re-roller reports receiving an offer from the mill for 150mm 3sp billet for February shipment at $545/t cfr Jakarta.
Kallanish assessed 5sp/ps or Q275 120/125/130mm square billet at $530/t cfr Manila, unchanged on-week.
Source:Kallanish
